UK Neobanking Fintech Perenna Secures £42M to Support Mortgages Launch

Perenna, a fintech firm, recently announced that they have successfully raised over £42m in their latest fundraise. The fundraising round was “led by Silverstripe Investment Management, alongside participation from existing investors.” This achievement is considered a significant milestone for Perenna, which is experiencing rapid growth. The company attributes its success to its exceptional team.

Perenna plans to use the funds to launch their Perenna mortgage exclusively to selected borrowers initially, with plans to open it up to the wider public later this year. The company believes that their mortgage product will be attractive to both first-time buyers and those looking to borrow into retirement.

The Perenna mortgage offers a combination of security and flexibility, allowing borrowers to fix their rate for up to 30 years. This provides peace of mind, as mortgage payments will not change during that time. Perenna aims to eliminate the stress of new deals, rising rates, and shocking surprises.

Perenna has a mission to create a nation of happy homeowners. The company is building an innovative digital mortgage bank with the goal of revolutionizing the UK mortgage market. They believe that the mortgage industry in the UK has seen very little product innovation, and lending processes remain inefficient, inflexible, and slow.

Their launch product, a flexible 30-year fixed-rate mortgage, provides full payment certainty and protection against interest rate rises. Perenna’s new technology platform is the most advanced in the mortgage market, allowing for rapid mortgage approvals and the ability to track every step of the journey on a mobile device.

A significant milestone for Perenna was receiving their full banking license from the Prudential Regulation Authority and Financial Conduct Authority. This license will enable Perenna to introduce their innovative long-term fixed-rate mortgage products to the UK market.

Unlike countries such as the US, Denmark, and other European countries, the UK mortgage market is dominated by variable and short-term fixed-rate products. This leaves mortgaged households exposed to rising rates, and first-time buyers struggle to enter the housing market. By offering a range of innovative products, Perenna aims to address these structural problems in the mortgage market for first-time buyers, second steppers, and later life homeowners.

Perenna’s funding model relies on issuing covered bonds to investors seeking long-term stable income, such as pension funds and insurance companies. This allows them to develop these innovative products that address the challenges faced by borrowers in the UK mortgage market.

Perenna is poised to make a significant impact on the UK mortgage market with their innovative approach and commitment to helping individuals become happy homeowners.

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