Digital bank Perenna plans 30-year fixes


Digital bank Perenna said it received its banking license today (August 16) and plans to offer 30-year fixed-rate mortgages to its customers.

The fintech company says it has obtained a banking license with restrictions from the Prudential Regulation Authority and the Financial Conduct Authority, adding that once its banking infrastructure is in place, it will start selling fixed-rate mortgages at term as well as a full suite. home loans.

It says the UK is in the midst of a ‘housing crisis’ which would benefit from the ‘long-term fixed rate mortgage market which can bring UK financial stability and UK consumers, specifically supporting first-time home buyers. ‘housing scale’.

Lenders typically offer mortgages with fixed rates for up to 10 years, with the most popular products having terms of two to five years.

In the past, the firm says housing-focused financial institutions have helped bring economic stability to countries around the world, such as Fannie Mae and Freddie Mac in the United States after the Great Depression, and Pfandbrief banks in Germany after World War II. War.

He adds that the UK government, the Bank of England and the Tony Blair Institute for Global Change have all identified the stability that a long-term fixed rate mortgage market can bring.

The firm says its business model will help channel “billions of pounds of insurance and pension funds” from the covered bond market into the UK real economy and improve domestic capital markets.

The company was co-founded by former BNP Paribas bankers Arjan Verbeek and Hamish Peacocke, as well as former Interbay chief executive Colin Bell.

Verbeek, Managing Director of Perenna, said: “UK financial infrastructure requires significant innovation to restore growth and reduce inequality.

“Perenna will be the model to achieve this, for mortgages as well as for small businesses and infrastructure. Perenna will help consumers buy their first home, relocate, support themselves in retirement, and ease the transition to net zero. »

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