Perenna banks $52m investment to begin rollout of mortgage products

Newly-licensed UK bank Perenna has secured a further $52 million equity investment to fund the rollout of its long-term fixed rate mortgage products to a more than 5,000-strong waitlist.

The fundraise was led by Perenna’s strategic investor Silverstripe Investment Management, with participation from other existing investors, and brings the total amount raised to almost $90 million since 2020.

Perenna announced earlier this month it had received an unrestricted banking licence from the UK’s regulators, the Prudential Regulation Authority and the Financial Conduct Authority.

The new bank’s flagship product provides customers with “certainty” in their mortgage rate for 20 or 30 years, while offering an early repayment charge (ERC) period of only five years.

Eligible waitlist applicants will be invited by Perenna to apply over the coming weeks, with the business opening up to the wider public later this year, it confirmed.

Arjan Verbeek, chief executive officer and co-founder of Perenna, said: “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.”

He added: “With over £3 trillion 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.”

Hamish Peacocke, chief commercial officer and co-founder of Perenna called the UK “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,” Peacocke said.