Second charge lender Selina Finance will fund loans of up to £100,000 without making consent from the first-charge lender a pre-condition.
This new feature will only be available for clients on ‘Status 0’ plans, covering those without an adverse credit history, or those who have only missed one payment in the last 12 months. To qualify borrowers also need to have their first mortgage with one of the following mainstream lenders: Halifax, NatWest, Santander, Nationwide, Skipton Building Society, Barclays, Coventry Building Society, Leeds Building Society, HSBC, Birmingham Midshires, Clydesdale, Accord Mortgages, Lloyds Bank, Royal Bank of Scotland, Yorkshire Building Society, Bank of Scotland, TSB and Virgin Money.
Clients will also need to have an up-to-date credit file dated within the last 30 days.
Selina Finance says this new feature will enable brokers to process funding applications more quickly, potentially speeding up the completion of time-sensitive cases by up to two weeks.
The launch of pre-consent funding is the latest enhancement offered by Selina Finance this year. Other improvement to its lending process include the introduction of e-signatures on offer documents to enable same-day funding, a new digital debt consolidation form and a submission checklist with complete packaging requirements.
This move towards pre-consent funding comes a week after Pepper Money launched its own ‘consent-to-follow’ option on its second charge mortgages. Again this feature is only available for borrowers with a first-charge mortgage from a range of selected high street lenders.
Selina Finance head of intermediary sales Stacey Woods says: “Pre-consent funding is an excellent solution for time-sensitive cases, particularly debt consolidation, where it can allow the customer to complete the loan faster before incurring monthly payments on expensive credit items.
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