The loan is available up to £1m and can be borrowed against home equity or an investment property.
It works similar to an overdraft, allowing borrowers to withdraw funds as and when they need to. Also, they only need to pay interest on the outstanding funds.
The offering will operate as a ‘flexi-loan’ within the first five years, before reverting to a full repayment schedule for the remainder of the term. Rates start from 4.95 per cent and this can be fixed during the first half of the term.
The lender has also increased the loan to value (LTV) on its property investor product from 70 per cent to 75 per cent.
This will work as a revolving credit facility for portfolio landlords and can be held against multiple properties held by a special purchase vehicle (SPV) or individual applicant.
Selina Finance has also made changes to its underwriting and valuations by moving to a cash-flow based method which assesses affordability depending on business circumstances.
Its proprietary automated valuation model (AVM) has been altered to remove the need for a physical valuation. Instead, the algorithm will analyse various data sources to value a property including size, type, comparable sold values and market liquidity.
Andrea Olivari (pictured), co-founder of Selina Finance, said: “We pride ourselves on offering credit that is both flexible and affordable, enabling borrowers to easily unlock the value tied up in their property.
“Part of our vision is to make business lending as affordable as a mortgage with the flexibility of an overdraft, and these improvements to our product offering bring us one step closer to that.”
Darvish Heshejin, vice president of growth at Selina Finance, added: “We’re excited to make our products more accessible to SMEs and property investors across the UK. We’ve been busy during lockdown listening to feedback from partners about how we can improve our offering and implementing all the necessary processes and policies to make it happen.
“As the economy begins its recovery from the pandemic, we think it’s a perfect time to see some real innovation in the SME and property lending markets.”