This significant development follows Perenna’s receipt of a full banking license from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) at the beginning of September, with lending operations slated to commence this autumn.
Perenna’s distinctive offering consists of mortgages with fixed terms spanning 20 to 30 years, accompanied by early repayment charges restricted to the first five years. This approach offers customers the assurance of stable payments throughout the entire mortgage term, while also affording them the flexibility to capitalise on potentially lower interest rates in the future and make changes that align with their financial goals.
In the initial phase, Perenna will exclusively extend its mortgage products to homeowners on their waiting list seeking to remortgage. To facilitate this exclusive launch, Perenna has joined forces with L&C, a trusted mortgage advisory service. Additionally, L&C will make Perenna’s mortgage offerings available to other L&C customers interested in remortgaging.
Following this initial rollout, Perenna intends to expand its presence in the broader UK mortgage market. The company plans to collaborate with a panel of distribution partners across the UK, aiming to empower a growing community of content homeowners.
Head of Product, Proposition, & Distribution, John Davison, said: “We are launching a new kind of mortgage, offering true long-term security, and flexibility, for homeowners. L&C has substantial experience of working with new lenders and we are excited to be working with them exclusively during this phase. Customers will still get the same great service from L&C as well as dedicated support from the team at Perenna.”
Alan Young, CEO at L&C, said: “We’re always keen to help bring new lenders and innovative solutions to market and are delighted to be partnering with Perenna, to launch their long-term fixed rate proposition. Borrowers are acutely aware of how volatile the mortgage market can be following the recent hikes in interest rates. Perenna’s offer of long-term security with only a 5-year tie in period brings a brand new approach to the fixed rate options in the market and will only strengthen the range of solutions for our customers.”
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