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.
