London-based fintech Perenna has raised $10 million to back its plans to obtain a banking licence and bring "fixed for life mortgages" to the UK housing market this summer.
The round was joined by former Deutsche Bank head of structured product syndicate and MD Kevin Flaherty, Capdesk founder Casper Arboll, and Star Capital managing partner Tony Mallin, among others.
Taking inspiration from the Danish mortgage model, Perenna is building a lender which will use long-term covered bonds to finance its products.
This, says the startup, means it means will be able to issue 30-year fixed-rate mortgages at highly competitive rates, while giving customers the flexibility to port their mortgage should they want to move and offering early repayment charges that only cover the first five years of the product.
Products will be available to borrowers ranging from first-time buyers, who can take out a mortgage with as little as a five per cent deposit, to those who want to move or take out a mortgage in later life.
Arjan Verbeek, CEO, Perenna, says: "This latest investment is a powerful vote of confidence from a high quality investor consortium in Perenna’s proposition. It puts us on target to launch our innovative range of long-term fixed-rate products, which we really believe could transform the UK mortgage market for consumers, allowing them to borrow what they can actually afford and creating a nation of happy homeowners."