Perenna launches 40-year fixed rate mortgages to market

Perenna has officially launched its flexible long-term fixed rate product - The Perenna Mortgage - to new purchase customers and first-time buyers through a pilot with L&C Mortgages.

Perenna will lend up to 95% LTV for fixed rate terms up to 40 years, helping borrowers lower their monthly payment amount, and will lend up to six times a borrowers’ income, subject to criteria. The product also only carries declining early repayment charges for the first five years.

A longer fixed rate term allows borrowers a higher affordability boost compared to those on a short-term fixed rate mortgage.

For example, on a £60,000 joint income, a first-time buyer could borrow up to £355,000 with Perenna, which the lender says is £70,000 more than the closest high street lender.

Colin Bell, COO and co-founder of Perenna, commented: “We’re really excited to open up the Perenna Mortgage to first-time buyers and new purchase customers. First-time buyers are constantly struggling to get onto the housing ladder due to affordability issues – whether that’s saving up enough for a small deposit or being able to borrow enough to afford a home they really want. The Perenna Mortgage is the complete mortgage product – increased affordability combined with long-term stability and flexibility.”

Arjan Verbeek, CEO and co-founder of Perenna, added: “We believe in unlocking the power of homeownership without having to sacrifice the amount you can borrow – borrowers should be able to have both their cake and eat it. As we remove market risk from borrowers, customers can borrow what they actually can afford, which in some cases can be on average up to 30% higher than the high street lenders. With our full unrestricted UK banking license and recent funding round, we are ready to deliver the much-needed changes in the UK mortgage market, and start delivering better outcomes for homeowners across the country.”