Legal & General Mortgage Club has added a range of long-term fixed-rate mortgages from Perenna to its lender panel.

The partnership will allow Perenna’s long-term fixed-rate mortgages to be rolled out via intermediaries working with Legal & General.

Perenna’s mortgages are fixed for a full term between 20 and 40 years, with only a five-year early repayment charge (ERC). Customers can access up to 95% LTV products, and up to six times a borrower’s income, subject to criteria.

This could act as a significant lending boost for many first-time buyers who consistently struggle with affordability. Perenna’s mortgages have no maximum age limits and no SVR.

“We pride ourselves on offering a range of mortgage solutions to our members that best suit their customers’ needs,” commented director at Legal & General Mortgage Club, Clare Beardmore. “Perenna is looking to provide certainty over customers’ monthly payments, and a range that opens up new options for borrowers.

“With recent volatility in mortgage rates, rising living costs and stubborn levels of inflation, long-term stability is something borrowers are searching for more and more. In this changing market, we believe it’s important to continue to expand our product offering and support advisers with new and innovative solutions, so they can best serve their clients. We are excited to see this innovative brand launch on our lender panel.”

Perenna uses a Danish bank funding model based on the covered bond market, rather than relying on short-term savings or deposits as the traditional high street lenders do, allowing the lender to fix its rates for the full term of the mortgage.

The firm also does not apply higher rates to stress test borrowers to determine their ability to afford a mortgage, as it has no reversion rate. Instead, Perenna’s goal is to provide borrowers with certainty over their monthly repayments and to remove any concerns around changing rates, while giving them the flexibility to change their mortgage when the time is right for them.

“Customers will be secure in the knowledge that their monthly repayments are fixed for the long-term, whilst knowing they can also change their mortgage if and when they want to without any charge, after five years,” chief operating officer and co-founder of Perenna, Colin Bell, added.

“At a time when mortgage affordability continues to be strained for first time buyers, our products will help people get a foot on the property ladder by allowing them to borrow more in a sustainable way. We believe our products will go a long way to solving some of the mortgage market’s most common issues, and our partnership with Legal & General will help us achieve that goal.”

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