Remortgaging From Selina Finance

Why People Remortgage From Selina Finance

Selina Finance customers commonly look to refinance for these reasons:

• High second charge rates — second charge loans from Selina typically carry rates of 8% to 12% or higher, considerably more than first charge alternatives
• Debt consolidation opportunity — rolling a Selina second charge into a new first charge remortgage can simplify your finances and reduce total interest costs
• First charge deal ending — if your existing first charge mortgage is also coming up for renewal, it is an ideal time to consolidate everything into a single new deal
• Improved credit since taking the Selina loan — if your credit profile has strengthened, you may qualify for mainstream first charge rates that are far cheaper than your Selina loan

Carrying two separate charges on your property is rarely the most cost-effective arrangement long-term. Reviewing your position regularly ensures you are not overpaying.

Selina Finance Rates vs Mainstream First Charge Rates

Selina's second charge products are priced at a premium, with rates typically ranging from 8% to 12% depending on your credit profile and loan-to-value. Some products may carry even higher rates for borrowers with more significant credit issues.

By contrast, a mainstream first charge remortgage might offer rates between 4% and 5.5%. If you consolidate a £30,000 Selina second charge at 10% into a first charge remortgage at 4.5%, the interest saving on that portion alone is approximately £135 per month.

When combined with potential savings on your first charge mortgage as well, the total monthly reduction from consolidating into a single competitive deal can be very substantial.

How to Remortgage From Selina Finance

Consolidating a Selina second charge into a first charge remortgage involves specific steps:

• Calculate your total borrowing — add your existing first charge balance to your Selina second charge balance to determine the total amount you need to borrow
• Check your overall LTV — your combined borrowing divided by your property value determines your loan-to-value, which affects the rates available to you
• Confirm Selina's redemption terms — check for early repayment charges and the exact settlement figure for your second charge loan
• Apply for a new first charge mortgage — your new lender needs to cover the total amount, redeeming both your existing first charge and Selina's second charge
• Complete the legal work — your solicitor redeems both charges and registers the new single first charge

This process is slightly more complex than a standard remortgage, so allow additional time for the conveyancing.

When Is the Right Time to Switch From Selina Finance

The right time to consolidate away from Selina depends on your broader mortgage position:

When your first charge deal ends — this is the natural point to review your entire borrowing. Consolidating your Selina loan into a new first charge deal avoids paying two sets of high revert rates.

When your credit has improved — if the issues that led you to second charge borrowing have resolved, you may now qualify for a mainstream first charge mortgage large enough to repay both your existing charges.

Once you have sufficient equity — consolidating both charges into a single first charge increases your LTV. Ensure you have enough equity to keep your LTV within acceptable limits for competitive mainstream rates.

After ERCs have expired — check whether early repayment charges apply on both your first charge mortgage and your Selina loan before proceeding.

Why Using a Broker Helps When Leaving Selina

Consolidating a second charge loan into a first charge remortgage is more complex than a straightforward remortgage, and broker expertise is particularly valuable in this scenario.

A broker can calculate whether consolidation genuinely saves you money once all costs are factored in — including arrangement fees, valuation costs, legal fees and any ERCs on your existing charges. They can also identify lenders who are comfortable with the higher loan amounts that consolidation often requires.

Additionally, if your credit history includes the circumstances that originally led to second charge borrowing, a broker can present your application in context, explaining the improvements in your financial position and targeting lenders who take the most pragmatic view of your history.