A New Bank Shaking Up the Mortgage Market
Perenna, a recently launched bank in the UK, is set to disrupt the current mortgage landscape. Founded by Colin Bell, Arjan Verbeek, and Hamish Peacocke in 2018, the bank has obtained its unrestricted banking license from the Prudential Regulation Authority and Financial Conduct Authority.
One of the key features that sets Perenna apart is its offering of mortgages with fixed rates for 20 to 30 years, providing borrowers with long-term stability. In addition, the bank allows users a five-year early repayment charge period, offering flexibility.
Transforming the UK Housing Market
Perenna’s CEO, Arjan Verbeek, believes that the bank’s unique funding model and banking license will introduce much-needed structural change to the UK. Verbeek points out that in other countries, billions of pounds of pension savings are channeled into the real economy using covered bonds, and Perenna plans to do the same in the UK. This, in turn, will unlock the housing market, which plays a significant role in the country’s GDP.
Perenna relies on its funding model, issuing covered bonds to investors such as pension funds and insurance companies, to secure long-term stable income. The bank initially received a restricted license from the Financial Conduct Authority in August of last year and has raised £35m through various financing rounds, including a £25m Series A round from Silverstripe IAG, known for backing Zopa.
Empowering Homeownership with Flexible Products
The chief operating officer of Perenna, Colin Bell, emphasizes the bank’s mission to create a nation of happy homeowners. Bell states, ‘Our product offers improved affordability, certainty of monthly payments, and flexibility through low early repayment charges. We want people to get on with their life and not worry about their mortgage product.’
Perenna plans to roll out its mortgage offerings to individuals on the waitlist first before making them available to the wider public later this year. With its disruptive approach and customer-centric focus, Perenna aims to address the underserved market and provide a better mortgage experience for consumers in the UK.