The partnership will see Perenna’s long-term fixed-rate mortgages rolled out in the UK through intermediaries working with Legal & General
Legal & General Mortgage Club has added Perenna Bank to its lender panel.
The partnership will see Perenna’s long-term fixed-rate mortgages rolled out in the UK through intermediaries working with Legal & General. Perenna’s mortgages are fixed for the full term, between 20 and 40 years, with just a five-year early repayment charge.
Customers can access up to 95% loan-to-value products, and up to six times a borrower’s income, subject to criteria. Perenna’s mortgages have no maximum age limits and no Standard Variable Rate.
Perenna uses a ‘Danish’ bank funding model based on the covered bond market, instead of relying on short-term savings or deposits as the conventional high street lenders do. This allows the company to fix its rates for the full term of the mortgage. The lender does not apply higher rates to stress test borrowers to determine their ability to afford a mortgage, as it has no reversion rate. The lender’s goal is to provide borrowers with certainty over their monthly repayments and to remove any worries around changing rates, whilst giving them the flexibility to change their mortgage when the time is right for them.
Through the partnership Perenna will support a range of customers; from assisting FTBs onto the property ladder and giving them confidence that their monthly payment will not change, to providing a mortgage option to those nearing or in retirement, with no end-of-term age limit.
Clare Beardmore, director at Legal & 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 provides new options for borrowers.
Colin Bell, COO and co-founder of Perenna, said: We are excited to be launching our range of long-term fixed rate mortgages through L&G 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. At a time when mortgage affordability continues to be strained for FTBs, our products will help people get a foot on the property ladder by letting them 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 L&G will help us achieve that goal.