Perenna has obtained its banking licence and will be launching 30-year fixed rate mortgages in the near future.
It received its banking licence with restrictions from the Prudential Regulation Authority & Financial Conduct Authority. 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 complete suite of mortgage products.
Perenna says it will deliver these mortgages using its bank funding model, boosting growth by stimulating investment and increasing systemic stability. It believes its business model will be the catalyst to resolve the UK’s productive finance challenge through the covered bond market channelling the trillions of pounds of insurance and pension monies into the UK real economy by improving the domestic capital markets, which to date has been a challenge.
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.”