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Perenna brings out RIO mortgage and interest-only option

  • 05/02/2024
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Perenna brings out RIO mortgage and interest-only option
Long-term fixed rate specialist Perenna has brought out a retirement-interest only (RIO) mortgage targeted at borrowers over the age of 50.

The RIO deal is available up to 60 per cent loan to value (LTV) with pricing beginning from 5.84 per cent.

The lender has also added an interest-only option to its product range up to a maximum of 75 per cent LTV, which is available to both purchase and remortgage customers.

Colin Bell (pictured), co-founder and COO, said: “Our RIO is a game changer for brokers and borrowers alike. Those aged over 50 have narrow options when it comes to mortgage products. With our market leading long-term fixed rate RIO, we provide a great choice for those in or approaching retirement, with ERC for only five years putting you in control.”

In an interview with this publication, Bell said that its no maximum age criteria was quite popular with brokers as there were a lot of customers aged 50 or over who were remortgaging but their term was constrained by age with most lenders.

According to Criteria Brain, there are 18 other lenders who offer no maximum age with its RIO mortgage product and for residential mortgages at point of application there were 14 lenders with no maximum age criteria.

Perenna launched to the market in Q4 2023 with its flexible long-term fixed rate repayment mortgage. Terms go up to 40 years and pricing starts from 5.75 per cent with borrowers able to access up to six times their earnings as they are not subject to a stress test.

The lender said that borrowers have stability of payments for the whole fixed rate term of 40 years and there are no early repayment charges for the first five years, giving them flexibility.

Perenna opened to the wider broker market in January this year and has joined the lender panels of Mortgage Advice Bureau, Stonebridge and Legal and General Mortgage Club.

The firm said that it has onboarded over 500 brokers so far with more joining every day.

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