By joining the Deposit Unlock scheme, Perenna joins the likes of Nationwide, YBS Accord Mortgages, Bluestone Mortgages, and Newcastle Building Society.
Borrowers using the scheme will be able to choose Perenna’s flexible long-term fixed rate mortgage to buy a new-build home, with the firm able to lend up to six times an individual’s income, boosting affordability.
The lender’s product at 90.01% to 95% loan to value (LTV) will be priced from 5.92%. The deal will also have short early repayment charges (ERCs) of no more than five years.
The firm will accept up to a 5% deposit contribution from developers who offer this incentive, so customers could buy a new build with zero deposit if the developer is putting forward the full 5% deposit.
The scheme was launched by reinsurance broker Gallager Re and the Home Builders Federation (HBF) in 2021 and allows first-time buyers and existing homeowners to buy a new-build home with a 5% deposit at “competitive interest rates”.
It looks to fill the gap left by Help to Buy, which was shuttered by the government last year.
‘Possibility of zero deposits for some customers’
Colin Bell (pictured), founder and COO of Perenna, said: “We’re thrilled to announce our collaboration with Deposit Unlock, a partnership aimed at making homeownership more accessible to everyone. Whether your customer is a first-time buyer looking to step onto the housing ladder or a second-time buyer seeking new opportunities, Perenna is here to make a difference in their outcome.
“Affordability remains a struggle for many buyers, and especially first-time buyers, and through this partnership and our consumer-friendly affordability boost mortgage, we will help aspiring homeowners realise their dream of homeownership and living in the home they really want.
“By enabling deposit contributions from developers, we’re opening doors to the possibility of zero deposits for some customers. This partnership is a winner for aspiring homeowners of new-build homes.”
Freddie Scarratt, head of UK mortgage at Gallagher Re, added: “Given recent history, Perenna’s long-term fixed rate offering is a great addition to the Deposit Unlock scheme, offering peace of mind on monthly payments to help borrowers achieve their homeownership dream”.
David O’Leary, executive director at HBF, commented: “The dream of homeownership has become an increasingly difficult one to achieve in recent years, with deposit requirements beyond the reach of many.
“The resultant lack of demand has impacted the supply of new homes, with developers unable to invest in new sites without any certainty in the market. Deposit Unlock was developed jointly by lenders and developers to address the dearth of affordable mortgage products, and so enable people to buy.
“Perenna’s addition to the Deposit Unlock stable will broaden the offering to a wider market, enabling more people to buy, and so more homes to be delivered.”
Perenna has been widening its proposition, joining the Own New scheme and adding a retirement interest-only (RIO) and interest-only option.
The company opened to the broker market earlier this year.
