Perenna launches “highest affordability” 40 year mortgage for first-time buyers

New UK neobank Perenna has launched a fixed-rate mortgage product with a term of up to 40 years.

Perenna will lend up to 95 per cent loan to value (LTV) and up to six times borrowers’ income.

The move follows its recent ¢52m funding from Zopa backer Silverstripe and its approval of a UK banking licence from the FCA and PRA.

“We believe in unlocking the power of homeownership without having to sacrifice the amount you can borrow – borrowers should be able to have both their cake and eat it. As we remove market risk from borrowers, customers can borrow what they actually can afford, which in some cases can be on average up to 30 per cent higher than the high street lenders," Arjan Verbeek, CEO & co-founder of Perenna said. 

"With our full unrestricted UK banking license and recent funding round, we are ready to deliver the much-needed changes in the UK mortgage market, and start delivering better outcomes for homeowners across the country," he added.