Perenna secures £7.4 million Series A investment from a group of investors

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18th January 2021 

Perenna raises $10 million in latest funding round to bring fixed for life  mortgages to UK market 

Following the investment, Perenna plans to obtain a banking licence as it moves towards  offering flexible 30-year fixed-rate mortgages at competitive rates 

Perenna, the London based fintech, has completed its latest funding round raising $10 million as part  of its plans to obtain a banking licence and bring its technology-centric lending proposition of fixed for  life mortgages to the UK housing market in summer 2021. The latest investment in Perenna has been  raised from a group of investors including former Deutsche Bank Head of Structured Product Syndicate  and MD Kevin Flaherty, Capdesk founder Casper Arboll, Star Capital managing partner Tony Mallin 

MBE, and other notable city investors and family offices. 

Perenna is building a mortgage lender which will use long-term covered bonds to finance its products,  taking inspiration from the Danish mortgage model. This innovative approach to lending in the UK  means that Perenna will be able to issue 30-year fixed-rate mortgages at highly competitive rates,  while giving customers the flexibility to port their mortgage should they want to move and offering early repayment charges that only cover the first 5-years of the product. 

Perenna’s products will be available to borrowers ranging from first-time buyers, who can take out a mortgage with as little as a 5% deposit, to those who want to move or take out a mortgage in later  life. The company is investing heavily in building its proposition around technology to provide a better  customer experience for UK borrowers. 

Britain’s mortgage market currently has around £1.5 trillion in outstanding loans. Perenna believes  that its radically different approach to mortgage lending could help many first time buyers onto the  housing ladder and release equity from existing homeowners. This could increase the UK mortgage  market by around £500 billion over the next 5 years, fixing the broken housing market and boost GDP. 

Arjan Verbeek, CEO and Co-Founder of Perenna said: 

“For too long real and meaningful innovation in the UK mortgage market has been limited. This hasn’t  just left Britain with a sector that has poor product offerings for customers. In some cases, borrowers  have been excluded from the housing market altogether, from first-time buyers struggling to meet  affordability criteria, to older homeowners who want to borrow but are restricted simply because of  their age.  

“This latest investment is a powerful vote of confidence from a high quality investor consortium in Perenna’s proposition. It puts us on target to launch our innovative range of long-term fixed-rate  products, which we really believe could transform the UK mortgage market for consumers, allowing  them to borrow what they can actually afford and creating a nation of happy homeowners.”  

Former Deutsche Bank Head of Structured Product Syndicate and MD, Kevin Flaherty said:  “Perenna’s proposition is truly innovative and will transform mortgages in the UK from a product, funding  and technology perspective.”

-ENDS 

About Perenna 

Perenna is building a mortgage lender with a customer-first mindset. Our ambition is to provide fair  and flexible mortgages that meet the needs of borrowers across the UK.  

Whether they are first-time buyers, homemovers, want to remortgage or want to borrow in  retirement, our mission is to create a nation of happy homeowners by making mortgages more  accessible through innovation. Where everyone who can afford a home can get one and where  borrowers never have to worry about refinancing or interest rates rising ever again. 

The founders are; Arjan Verbeek, CEO, Colin Bell COO, and Hamish Peacocke, CCO.

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Safiya Marzook

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