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Legal and General Mortgage club adds Perenna to lender panel

  • 10/01/2024
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Legal and General Mortgage club adds Perenna to lender panel
Legal and General Mortgage Club has brought long-term fixed rate specialist Perenna on to its lender panel.

The partnership will roll out the firm’s long-term fixed rated rate products, which range between 20 and 40 years with only a five-year early repayment charge (ERC), to brokers working with Legal and General.

The products go up to 95 per cent loan to value (LTV) and offer up to six times a borrowers’ income subject to criteria.

The product also has no maximum age limit and no standard variable rate (SVR).

Perenna uses a Danish bank funding model based on the covered bond market, rather than using short-term savings or deposits like high street lenders. This allows the company to fix rates for the full-term of the mortgage.

Higher stress rates also do not apply to borrowers as there is no reversion rate.

The product can assist first-time buyers onto the property ladder and offer an option for those approaching or in retirement as there is no end-of-term age limit.

Clare Beardmore (pictured), director of Legal and General Mortgage Club, said: “We pride ourselves on offering a range of mortgage solutions to our members that best suit their customers’ needs. Perenna is looking to provide certainty over customers’ monthly payments, and a range that opens up new options for borrowers.

“With recent volatility in mortgage rates, rising living costs and stubborn levels of inflation, long-term stability is something borrowers are searching for more and more. In this changing market, we believe it’s important to continue to expand our product offering and support advisers with new and innovative solutions, so they can best serve their clients. We are excited to see this innovative brand launch on our lender panel.”

Colin Bell, chief operating officer and co-founder, Perenna, added: “We’re excited to be launching our range of long-term fixed rate mortgages through Legal and General Mortgage Club.

“Customers will be secure in the knowledge that their monthly repayments are fixed for the long-term, whilst knowing they can also change their mortgage if and when they want to without any charge, after five years.”

He continued: “At a time when mortgage affordability continues to be strained for first time buyers, our products will help people get a foot on the property ladder by allowing them to borrow more in a sustainable way.

“We believe our products will go a long way to solving some of the mortgage market’s most common issues, and our partnership with Legal & General will help us achieve that goal.”

Perenna launched its product in November last year, with 40-year fixed starting from 5.75 per cent, having secured its full banking licence in September.

The company has partnered with Stonebridge, MAB and L&C, and hired two national account managers to its team.

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