Perenna have now received its banking licence with restrictions from the PRA and FCA. This means Perenna is now an authorised bank, and once it confirms that its banking infrastructure is in place and its restrictions lifted it will offer long-dated fixed rate mortgages and eventually offer a full range of mortgage products.
Perenna’s products will be available to borrowers ranging from first-time buyers, who can access 95% Loan to Value (LTV) products, to those who want to move, remortgage or take out a mortgage in later life.
Perenna will use long-term covered bonds to finance its products, taking inspiration from the Danish mortgage model.
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Last year, Target Group announced that Perenna had become the first client of its Mortgage Hub. The partnership will see the Mortgage Hub powering Perenna’s mortgage offering, allowing it to provide decisions-in-principle within 20 seconds.
Arjan Verbeek, CEO and founder of Perenna, said, “It is very exciting to be a bank that is authorised with restrictions, and it is a major milestone for the team.
“The UK financial infrastructure requires significant innovation to get growth back and reduce inequality. Perenna will be the blueprint to deliver this, for mortgages as well as SME and infrastructure.
“Perenna will support consumers with buying their first homes, moving home, supporting themselves in retirement, and help the transition to net zero. Perenna looks forward to working with other initiatives to increase private sector investment into the real economy addressing the structural challenges we face.”