Secured for life

Welcome to a new kind of mortgage that values long-term customer relationships, financial security and individual freedom.

How it works

A fixed for life mortgage works like any other mortgage.

Perenna provides mortgages against a promise to pay a fixed monthly payment over a period of time and we take a charge over your property as security for the payments.

Like all mortgage products, if the borrower stops the monthly payments, Perenna has the right to repossess the property and sell it to recoup the loss.

Perenna is different

The key difference between a Perenna mortgage and a mortgage from a high street bank is the rate type over the length of the mortgage.

As the name suggests a fixed for life mortgage means the monthly payment over the whole life of the mortgage is fixed.

With Perenna, you never have to worry about refinancing dates or going onto higher interest rates. You can take your mortgage with you when moving to a new home or sell your home with the mortgage. You can pay back the loan without repayment charges after 5 years.

Perenna High street bank
Fixed interest rate for 30 Years 2-15 Years
How much can you typically borrow?* 5-6 x Income 4.5 x Income
Age limit No 65-70
Ongoing product and broker fees No Yes
Forced refinancing No Yes
Early Repayment Charge Up to 5 years Up to 15 years

*subject to lending criteria and applicable regulation

Funding model

Perenna is shaking up the mortgage market with our unique funding model. Our mortgages will be financed by issuing covered bonds on the London Stock Exchange.

The bonds are bought by investors who receive an interest payment for the loan term. Your monthly mortgage payment is passed through Perenna to the investors. You can even buy these covered bonds yourself.

As a borrower you’ll never have to think about the investors. In fact, you’ll never notice they exist.

Covered bonds

What are these covered bonds you keep referring to?

A covered bond is a debt security which is secured against a pool of assets. In Perenna’s case, the assets are charges over borrowers’ homes.

As part of the mortgage contract, the borrower gives Perenna a charge over their home as security. That’s why your home may be repossessed if you fail to meet the monthly repayments. In the same way as the borrower promises to repay Perenna, Perenna promises to repay investors, the covered bond holders.

If you make your mortgage payments until the end of the term the covered bond will be fully repaid and the security over your house is released. If you repay early the same thing happens. So it’s just like every other mortgage except that the interest rate is fixed for the whole term.

Mortgage Application

We’re building a fully digital mortgage application process with focus on speed, certainty and an efficient delivery of your mortgage. Here is what you need to get one.

Personal information

Every mortgage applicant has to go through an identity check before being allowed to apply for a mortgage. We have to understand who you are and will undertake certain checks to be sure. We will ask you to identify yourself via photos and via identity documents such as a passport. Be prepared to share:

  • A photo ID (current passport or UK photocard driving licence)
  • Proof of your address
  • Your bank account details that you intend to make your mortgage payments from

Credit Check

You’ll have to pass a credit check. We have to be sure that you have been responsible with credit used in the past and a credit check is a way for us to do that. We will also ask you for proof of your income and an evaluation of your spending habits and how you intend to repay the mortgage.

  • Proof of your income
  • Repayment strategy, how you intend to repay the mortgage
  • Details of any mortgages you have with other lenders, including buy-to-let or permission-to-let mortgages

Home valuation

Finally, we have to be sure that your current, first, or next home provides sufficient collateral for the loan. We use a combination of desktop and on-site valuations in order to understand this. We will typically ask you for the following information:

  • Details of the property you want to buy, including the building type, value and full address. If it’s a leasehold property, we’ll also need to know the remaining term of the lease
  • Your solicitor’s details, whether you’re purchasing a property or adding/removing someone from a mortgage

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