Perenna has received its banking licence with restrictions from the Prudential Regulation Authority and Financial Conduct Authority.

Once Perenna confirms its banking infrastructure is in place and its restrictions lifted, it will offer long-dated fixed rate mortgages and eventually a complete suite of mortgage products. 

The UK government, the Bank of England and the Tony Blair Institute are among the commentators to have identified the benefits that a long-term fixed rate mortgage market can provide to UK financial stability and consumers, specifically supporting first-time buyers onto the housing ladder.

Through Perenna’s long-term funding model, the bank also believes it can help the UK develop an efficient and scalable green mortgage market. Perenna said its business model can be a “catalyst” to resolve the UK’s productive finance challenge through the covered bond market, by channelling trillions of pounds into the UK real economy.

Perenna CEO and founder, Arjan Verbeek, commented: “It is very exciting to be a bank that is authorised with restrictions, and it is a major milestone for the team. The UK financial infrastructure requires significant innovation to get growth back and reduce inequality. Perenna will be the blueprint to deliver this, for mortgages as well as SME and infrastructure.

“Perenna will support consumers with buying their first homes, moving home, supporting themselves in retirement, and help the transition to net zero. Perenna looks forward to working with other initiatives to increase private sector investment into the real economy addressing the structural challenges we face.”

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