It’s a new day, it’s a new dawn, it’s a new bank and it’s feeling like it wants to improve the UK mortgage market. London-based Perenna has just bagged itself a further $52 million in equity investment funding to fuel the roll-out of its long-term fixed-rate mortgage products on its fintech platform.
It has raised almost $90 million since 2020 and the latest round was led by strategic investor Silverstripe Investment Management and includes participation from existing investors.
The fintech, which recently obtained its UK banking licence, is swapping retail bonds for covered bonds when it comes to long-term fixed-rate mortgages, taking inspiration from other markets.
“The UK is a clear outlier when compared to other advanced economies like the US and Denmark. The market is in dire need of reform at a time when homeowners are battling a range of challenges, whether that be first-time buyer affordability, those remortgaging in a higher rate environment or those looking for greater choice and flexibility in later life,” says Hamish Peacocke, CCO and co-founder, Perenna. “Our unique covered bond funding model can play a huge part in this reform. By establishing a funding platform like ours, there’s a huge opportunity for us to transform other international markets where similar structural problems exist. The UK is the perfect first step.”
Due to launch the Perenna Mortgage, following this latest fundraise, the firm will offer ‘20-30 year fixed-rate products, to a 5,000+ waitlist’. The offering will be available to the wider public later in the year.
“This successful fundraise, set against the backdrop of a challenging fundraising market is a clear testament to the strength of our unique approach and the significant opportunity to reimagine the structure of the UK mortgage market,” says Arjan Verbeek, CEO and co-founder, Perenna. “With over £3tn of investor monies having no efficient access to the UK mortgage market, our covered bond platform will unlock this, enabling them to generate sustainable risk-adjusted returns whilst also delivering better outcomes for homeowners across the country.”
Lead image: Tierra Mallorca.
