Digital mortgage lender Perenna has opened its waiting list following the award of a restricted banking licence by UK regulators.
The startup was founded by former BNP Paribas bankers Arjan Verbeek and Hamish Peacocke, along with ex-Interbay executive Colin Bell. They report having already signed up “thousands” of individuals to the waitlist.
Perenna’s first offering will be a lifetime fixed-rate mortgage with a term of 30 years and a maximum loan-to-value ratio of 95%. Future products will include options for remortgaging and loans tailored for later-life borrowers.
Mortgages will be funded by issuing covered bonds on the London Stock Exchange, with the lender securing repayments by taking a charge over the property.
This lifetime fixed-rate product represents a departure from the typical mortgage offerings in the industry, which usually provide fixed rates for a maximum of ten years, with the most common products lasting two to five years.
“Our approach enables us to assist more first-time buyers in entering the property market, offer mortgages to retirees, and protect all customers from the volatility of rising interest rates,” Perenna announces. “With the significant increases in everyday expenses, from higher food prices to soaring energy bills, facing increasing mortgage costs is the last thing we want amid the usually short-term designs of UK mortgages.”
In a related development, GB Bank, a new financial institution providing property development loans ranging from £500,000 to £5 million, has also received its banking licence from the FCA. The Teesside Pension Fund is GB Bank’s cornerstone investor, contributing £48 million in capital to launch the bank, which aims to lend £3 billion over the next three years.