Perenna receives banking licence approval

Published on

New bank, Perenna, has secured its unrestricted banking licence from the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).

It is the first UK start-up to secure an unrestricted bank licence in 2023.

The approval marks a key milestone for Perenna, allowing it to introduce its long-term fixed rate mortgage products to the UK. Perenna’s flagship product will enable customers to have certainty in their mortgage rate for 20 or 30 years whilst benefitting from the flexibility provided by an Early Repayment Charge (ERC) period of just five years.

The proposition is created by a funding model which relies on issuing covered bonds to investors seeking long-term stable income, such as pension funds and insurance companies. It will enable the business to develop a range of products aimed at addressing structural problems in the mortgage market for first time buyers, second steppers and later life homeowners.

Initially, Perenna will offer its mortgages to people on its waitlist, and then the wider public later this year.

Arjan Verbeek, CEO & co-founder, Perenna, said: “We’re introducing much needed structural change to the UK. In other countries, billions of pounds of pension savings are channelled into the real economy using covered bonds.

“Together, our unique funding model and banking licence will enable us to do exactly the same in the UK and unlock the housing market, an important part of GDP.”

Colin Bell, COO & co-founder, Perenna, added: “Our mission is to create a nation of happy homeowners . We’re excited to offer our flexible products to consumers who, for too long, have been left underserved. Our product offers improved affordability, certainty of monthly payments, and flexibility through low ERCs. We want people to get on with their life and not worry about their mortgage product.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Bank of England expected to hold interest rates at 4.5% amid economic uncertainty

The Bank of England is widely expected to maintain interest rates at 4.5% when...

£6.5k bill for homebuyers who miss stamp duty deadline

Rent and mortgage spending rose 7.7% year-on-year in February, as more homeowners moved from...

Advice Guru partners with Pure Retirement to support broker education

Financial adviser learning platform Advice Guru has announced a new sponsorship partnership with Pure...

Nationwide ups LTV limits for interest-only and foreign national borrowers

Nationwide has announced changes to its mortgage lending criteria, increasing the maximum loan-to-value (LTV)...

Other news

Why predicting 2025 interest rates feels like a fool’s errand

In my first (and for some reason clearly not my last) article last month,...

Bank of England expected to hold interest rates at 4.5% amid economic uncertainty

The Bank of England is widely expected to maintain interest rates at 4.5% when...

£6.5k bill for homebuyers who miss stamp duty deadline

Rent and mortgage spending rose 7.7% year-on-year in February, as more homeowners moved from...