UK mortgage lending startup Perenna has successfully raised $52 million shortly after obtaining an unrestricted banking license.
Last year, Perenna secured a restricted banking license and raised £25 million in a Series A funding round from Silverstripe IAG. With full FCA and PRA approval, combined with new equity investments from Silverstripe and previous investors, the company is set to launch its long-term fixed-rate mortgage products in a UK market typically dominated by variable and short-term fixed-rate offerings.
Despite challenging conditions in the early-stage funding landscape, Perenna has raised a total of $90 million since its inception in 2020.
CEO and co-founder Arjan Verbeek stated, “This successful fundraise, especially in a challenging fundraising market, is a clear testament to the strength of our unique approach and the significant opportunity to reshape the structure of the UK mortgage market.”
The proceeds will allow Perenna to introduce the Perenna Mortgage, offering 20-30 year fixed-rate products to a waitlist of over 5,000 applicants. Those eligible will be invited to apply in the coming weeks, with plans to open the offering to the wider public later this year.
Perenna’s innovative funding model focuses on issuing covered bonds instead of relying solely on retail deposits, thereby unlocking access to the UK mortgage market for institutional investors seeking long-term, stable income.
Verbeek added, “With over £3 trillion of investor funds lacking efficient access to the UK mortgage market, our covered bond platform will facilitate this, allowing investors to achieve sustainable risk-adjusted returns while delivering improved outcomes for homeowners across the country.”