Perenna secures £7.4m in Series A funding to launch fixed-rate mortgages in the UK
The London fintech raised capital from a group of private investors to obtain a banking licence and introduce 30-year fixed-rate mortgages.
Perenna is a bank offering long-term fixed rate mortgages designed to reform the UK housing finance market. The business employs a covered bond funding model to provide stable yields for institutional investors.
Perenna has secured £7.4m in a Series A funding round to support its efforts in obtaining a banking licence. The company plans to deploy the capital to launch long-term fixed-rate mortgages in the UK market by the summer of 2021. Backing for the round came from a consortium of private investors and family offices, including Kevin Flaherty, Casper Arboll, and Tony Mallin MBE.
The firm intends to model its lending approach on the Danish system by utilising long-term covered bonds. This structure allows borrowers to access 30-year fixed-rate mortgages while maintaining flexibility for house moves and early repayments. The business targets various borrower segments, ranging from first-time buyers requiring low deposits to older homeowners.
The domestic mortgage sector holds approximately £1.5 trillion in outstanding loans, a figure the firm believes could expand significantly through alternative lending structures. Leadership highlights that conventional market offerings have historically restricted certain buyers due to rigid affordability criteria and age limits. The fresh capital ensures the enterprise remains on track to roll out its product range.
Use of funds
- 01Continue product development
