The investment will be used in the process of launching its long-term fixed-rate mortgage products. The platform is set to provide customers with access to the UK mortgage market, while also enabling them to generate sustainable risk-adjusted returns and delivering improved outcomes for homeowners across the region.
The funding was led by Silverstripe Investment Management, with other existing members also participating in the round.
By providing users with long-term fixed-rate mortgages, the business will be able to tackle a range of structural homeownership challenges and difficulties. These include first-time buyer affordability, the process of mitigating the impact of interest rate volatility, as well as increasing choice and overall flexibility in later life.
The proceeds from the fundraiser are set to see the company launch the Perenna Mortgage, after offering the 20-30 year fixed rate products to the multiple companies that are on the waitlist.
The UK-based lender Perenna received in September 2023 its regulatory approval for offering 20-year and 30-year mortgages with fixed rates to customers and clients in the region.
The license was obtained from the Financial Conduct Authority back in August 2023. The approval gave the financial institution the possibility to provide extended-term loans to clients and users that focused on long-term interest rate stability.
According to the press release published at the time, the company emphasised the importance of stability when it comes to homeownership, with a note on the fluctuation that is present in interest rates over time.
In addition, the company revealed that the need and demands for longer-term mortgage deals surged over the past two years, being driven by the cost-of-living crisis, as well as the successive increases present in the Bank of England base rate. Perenna’s launch of extended-term home loans coincided at the time with comments from the Bank of England’s uncertainty on the necessity for further interest rate hikes.
Perenna intended to apply redemption charges only for the five-year mortgage. This was set to allow customers to access more flexibility in order to switch to a more economical product after this initial period of time. The firm also aimed to issue covered bonds in order to finance its mortgages, as well as to pension funds and insurers for long-term funding.
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