Perenna has joined the Own New Rate Reducer scheme, which offers buyers lower rates if they buy a home with certain housebuilders.
The scheme provides an incentive to the buyer, through a lower rate. Whilst other participating lenders in the scheme reflect the lower rate in their initial fixed term only, Perenna passes on the reduction across the whole mortgage term.
On the scheme, Perenna’s minimum term is 25 years, and the minimum LTV is 60%. Perenna’s rates on the scheme are 0.5% lower than its standard mortgage products. Its 90% LTV, over a term of 30 years and with a product fee, is 5.26% (versus 5.76% on its standard mortgage product on the same terms).
Participating housebuilders include Barratt Developments, Persimmon, Taylor Wimpey, Bellway, and Berkeley Homes.
Perenna opened up to the wider broker market earlier this year with its long-term fixed rate mortgage, which offers increased affordability through the removal of the reversion stress test and only has early repayment charges for the first five years.
Colin Bell, founder and COO of Perenna, said: “We are excited to combine the affordability boosting powers of the flexible Perenna Mortgage with the unique scheme from Own New. This rate reduction will add further affordability, allowing buyers to borrow more as the reduction is for the life of the mortgage.
“Together we will enable more people into homeownership, and work towards creating a nation of happy homeowners. Combining rates fixed for the whole term, with no exit charges after five years, gives people stability and flexibility to make changes when the time suits them.”
Eliot Darcy, founder of Own New, added: “Perenna’s mortgage products will bring a new dimension to Own New Rate Reducer, providing new homes buyers with an opportunity to reduce their mortgage rates over a longer term. This is an important moment which further enhances the options available to people who are looking to buy an energy-efficient new home. This will help to drive consumer confidence and to support the housebuilding industry.”