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Perenna raises £7m to bring Danish-style mortgages to UK

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  • 19/01/2021
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Perenna raises £7m to bring Danish-style mortgages to UK
Perenna has completed a funding round which raised $10m (£7.3m) with an aim to bring fixed for life mortgages to the UK by the summer.

 

The investment was raised by a group of investors including Kevin Flaherty, former head of structured product syndicate at Deutsche Bank and Casper Arboll, founder of equity management platform Capdesk. 

As Mortgage Solutions revealed earlier this month, the prospective lender as already applied for a banking licence and hired a chief risk officer.

Perenna will base its products on the Danish mortgage model and issue 30-year fixed rate deals that allow borrowers to port their mortgage and be entitled to early repayment charges that cover the first five years. 

Its products will be available to first-time buyers, those with a five per cent deposit, remortgagors and homemovers.

Colin Bell, COO and co-founder of Perenna, said: “Long-term, fixed rate mortgages have the power to help many of the currently underserved demographics in the UK, such as first-time buyers and those in later life.  

By increasing the numbers of people able to secure mortgage finance, we will help boost business volumes for intermediary partners who will play an essential role in helping to promote and educate the benefits of fixed for life mortgages to those who have found the current market model time consuming and costly.  

Arjan Verbeek, CEO and co-founder of Perenna, said “real and meaningful” innovation in the UK mortgage market had been limited for too long. 

Verbeek added: “[Some] borrowers have been excluded from the housing market altogether, from first-time buyers struggling to meet affordability criteria, to older homeowners who want to borrow but are restricted simply because of their age.  

“This latest investment is a powerful vote of confidence from a high quality investor consortium in Perenna’s proposition.” 

“It puts us on target to launch our innovative range of long-term fixed-rate products, which we really believe could transform the UK mortgage market for consumers, allowing them to borrow what they can actually afford and creating a nation of happy homeowners,” Verbeek said. 

 

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