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Perenna garners over £100m in enquiries in a day following banking licence update

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  • 16/08/2022
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Long-term fixed rate lender Perenna has received over £100m in enquiries for its products after announcing it had obtained its banking licence earlier today.

The lender received its banking licence with restrictions from the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) earlier today. This means it is an authorised bank but needs to confirm its banking infrastructure and have restrictions lifted before it can start lending.

The restrictions are around mobilisation requirements, specifically around deposits and regulated mortgage lending.

According to the FCA’s register, the aggregate amount of deposits held by the firm cannot exceed £50,000 and the aggregate value of debt under regulated mortgage contracts may not exceed £10,000.

Colin Bell (pictured), chief operating officer of Perenna, said the firm had over £500m of enquiries to date, with over £100m coming in today in the first few hours of the news of it receiving its banking licence.

He added that it was already doing the work to get restrictions lifted and aimed to be issuing mortgages in the first quarter of next year.

According to reports in the Financial Times, the lender could offer rates of four to 4.5 per cent on the 30 to 50-year loans, although this is subject to gilt yields at the time the products go live.

The report also said it was planning on working with challenger banks as distribution partners, letting them using the funding platform to issue loans.

The lender had initially started seeking lending authorisations from the regulator in 2019, targeting a launch later that year, but this was delayed.

“Gaining a banking licence takes time, we are doing something new in the UK. But we are there now with restrictions, and we are looking forward and working on going live,” Bell said.

Bell had also hinted last year that mortgage brokers advising on 30-year fixed rate deals could get repeat commission if they carried out regular reviews.

He said: “We plan to pay up front and then through the life of the mortgage after a few years. This is a long-term contract and introducers need to be paid for maintaining the client relationship.”

Perenna is the latest lender to target the long-term fixed rate space, with the like of Habito, Kensington Mortgages and Landbay launching products this year.

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