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First flexible secured loan in the UK launched
Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 30/04/2021

A new type of secured loan has been launched offering borrowers the option to drawdown funds as and when they need them rather than having to take a full lump sum. This new loan, the ‘FlexiLoan’ is the first of its type in the UK and is the creation of Selina Finance, a fintech lender.
The FlexiLoan allows borrowers to access funds secured against their home up to a pre-approved credit limit. Once approved, they can take what they need when they need it and are only charged interest on funds taken. This is a significant difference to other types of secured loans that only offer borrowers a single lump sum. The ability to drawdown funds as needed rather than taking a lump sum could save some borrowers money as they will only be charged interest on when the money is taken.

Borrowers must make the minimum repayments every month and can even pay back the loan in full without incurring early repayment changes. The minimum monthly repayment is based on the funds outstanding over the remaining term. This can increase or decrease as funds are drawn down or repaid.

Borrowers can choose loan terms of up to 30 years, with the first five of these offering the flexible loan features. After five years any money borrowed that is not paid back reverts to a traditional secured loan with a fixed monthly repayment. The borrower can choose to pay this until the term ends or pay off the loan in full.

The FlexiLoan is available up to 75% LTV, with a minimum loan of £25,000 up to £1,000,000 and a minimum term of three years up to 30 years. The loan can be used for several reasons including home renovations where the borrower needs to access funds gradually as the renovation progresses or to pay for private school fees and repaying these across each term.

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How to borrow without paying interest

Many financial experts predict that the easing of lockdown will see a spending boom among consumers looking to spend money they have saved over the last 12 months. While ideally, consumers will be using their savings to enjoy the new freedoms, others may be considering borrowing money instead.

When considering borrowing money, it is not advisable to borrow unnecessarily and borrowers must have the ability to keep up with repayments. But, while it should often be a last resort for consumers, if done sensibly, borrowing can be a useful tool for personal financial management.

For those who have to borrow, the best way to do so is to borrow without paying interest. The best way to borrow using interest-free credit is to have a repayment plan in mind before borrowing the money to ensure that it can be fully repaid before the interest-free period ends so that interest is never added to the money borrowed.

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More borrowers accepted for secured loans in the UK in March 2021

The Secured Loans Index has revealed a 31% increase in secured lending in March 2021 compared to the previous month. There were more than 2000 secured loans completed, at a total of £91.4 million during March 2021. That increased figure is now only 1.72% behind levels achieved in March 2019, a signal that the market is recovering from the effects of the Coronavirus pandemic.
There was a decrease in the number of borrowers taking loans over 85% - a reduction of 4.18% compared to last month.

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How to spring clean your finances

Spring is now officially here and, especially after the financial impact of the past 12 months, this is the perfect time of year for consumers to take stock and give their personal finances a spring clean.

Spring cleaning personal finances is easy to do and could save money each month as consumers switch to lower repayment options and evaluate existing deals they are on. To help make it easier, we’ve highlighted the key areas to look at when taking stock of personal finances.

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Simple steps to reducing debts

Today marks the start of Debt Awareness Week, which coincides with the one year anniversary of the first lockdown in England and Wales, the financial fallout of which has seen many consumers falling into debt.

In fact, StepChange, the debt advice charity behind Debt Awareness Week, has acknowledged the impact the pandemic has had on people’s finances and the fact that many are worried about the debts incurred over the last 12 months by encouraging consumers to use this week to take the first steps towards getting debt help and talking about their financial problems.

“This Debt Awareness Week, we’re focusing on breaking down the stigma that surrounds debt, opening up the conversation and encouraging people to take #TheFirstStep towards resolving their money worries,” explained Richard Lane, director of External Affairs at StepChange.

“With the week also marking a year since lockdown began in England and Wales, and 2.5 million people facing a financial crisis due to the impacts of Coronavirus, it’s more important than ever that households across the country know where to get help. You are not alone.”

Those struggling with debt should consider seeking help and advice from a free debt charity, such as StepChange, or from Citizens Advice.

For those who have incurred extra debts over the last year, but who are able to manage their debts, here we’ve put together some steps consumers can take to reduce and clear their debts.

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Recent News

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My Community Bank commended as loan provider of the year 2021

17th March 2021

My Community Bank has been commended for the non-mainstream loan provider of the year 2021 at the Moneyfacts Consumer Awards last month. Analysts at Moneyfacts reviewed the loans available from non-mainstream lenders to create a shortlist.

My Community Bank has been commended for the non-mainstream loan provider of the year 2021 at the Moneyfacts Consumer Awards last month. Analysts at Moneyfacts reviewed the loans available from non-mainstream lenders to create a shortlist.

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Consumers urged to act quickly to secure best credit card and loan deals

17th March 2021

Interest-free deals on credit cards have improved over the last three months, while personal loan rates remain competitively low, but consumers are urged to act quickly to secure the best deals as experts warn that they could be withdrawn at any moment

Interest-free deals on credit cards have improved over the last three months, while personal loan rates remain competitively low, but consumers are urged to act quickly to secure the best deals as experts warn that they could be withdrawn at any moment

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How much stamp duty could you save when buying a holiday let?

26th February 2021

Those wanting to buy a UK holiday let as an investment or for their own use can benefit from a reduction on stamp duty tax. We compare the savings across the top UK destinations.

Those wanting to buy a UK holiday let as an investment or for their own use can benefit from a reduction on stamp duty tax. We compare the savings across the top UK destinations.

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Plans to extend Stamp Duty holiday to June

24th February 2021

When Chancellor Rishi Sunak announces the spring budget next week, it is expected that he will extend the Stamp Duty holiday until the end of June

When Chancellor Rishi Sunak announces the spring budget next week, it is expected that he will extend the Stamp Duty holiday until the end of June

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Most Popular Loans News

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First flexible secured loan in the UK launched

30th April 2021

A new type of secured loan has been launched offering borrowers the option to drawdown funds as and when they need them rather than having to take a full lump sum.

A new type of secured loan has been launched offering borrowers the option to drawdown funds as and when they need them rather than having to take a full lump sum.

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Coronavirus dries up lending – what to do if you need a loan right now

24th September 2020

Since April getting accepted for a personal loan has become significantly harder as lenders restricted lending to protect themselves from the risk of rising unemployment and a worsening economy due to the Coronavirus pandemic.

Since April getting accepted for a personal loan has become significantly harder as lenders restricted lending to protect themselves from the risk of rising une

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Should I use a bridging loan to get stamp duty saving?

22nd December 2020

The stamp duty holiday is set to come to an end 31 March 2021. We explain the faster alternatives to access finance to buy a property before the deadline.

The stamp duty holiday is set to come to an end 31 March 2021. We explain the faster alternatives to access finance to buy a property before the deadline.

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How to borrow without paying interest

28th April 2021

Many financial experts predict that the easing of lockdown will see a spending boom among consumers looking to spend money they have saved over the last 12 months

Many financial experts predict that the easing of lockdown will see a spending boom among consumers looking to spend money they have saved over the last 12 months

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