Digital mortgage lender Perenna has opened its ready record after being been awarded a restricted banking licence by UK regulators.
The primary product to be rolled out will likely be a lifetime 30-year fixed-rate mortgage with as much as 95% LTV. Different merchandise within the pipeline embody loans for remortgages and later life debtors.
Mortgages will likely be financed by issuing lined bonds on the London Inventory Change, with the lender taking a cost over the property as safety for repayments.
The lifetime fastened price product is a break from mortgage trade norms, wherein lenders sometimes present mortgages with fastened charges of as much as 10 years, with the most well-liked merchandise lasting two and 5 years.
“Our strategy allows us to assist extra first-time consumers onto the property ladder, present mortgages to individuals in retirement, and shield all clients towards the uncertainty of accelerating rates of interest,” says the Web site blurb. “We’re all experiencing vital will increase in our each day prices. From steeper meals costs to rising vitality payments. The very last thing we wish to face is increased mortgage prices due to the best way UK mortgages are designed – for the short-term.”