Perenna mortgages review

Looking to fix your mortgage rate for the long term? Perenna might have the answer.

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Rachel Wait

Edited by

Michelle Stevens

Updated

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Up to 40-year fixed rate mortgages
Currently only available for those looking to remortgage

If you’re looking to buy your first home or remortgage and want to fix your mortgage rate for the long term, it could be worth exploring what Perenna offers.

What is Perenna?

Perenna is a new kind of mortgage lender that lets borrowers fix their mortgage rate for a term of 20 to 40 years. It doesn’t offer short term mortgages, so you can’t choose from traditional 2-, 3- or 5-year deals.

Rather than funding its mortgages with savings deposits like other lenders, Perenna uses covered bonds. These are debt obligations issued by banks. Perenna issues covered bonds to investors looking for a long term stable income, including insurance companies and pension funds.

The company was set up in 2018 and was authorised as a bank by the Financial Conduct Authority (FCA) in 2022. Perenna says its aim is to help more people buy a home they can afford. It offers flexible long term mortgages that protect customers from rising interest rates and enable them to budget better.

What type of mortgages can I get with Perenna?

Currently, Perenna only offers residential mortgages on a repayment basis. You can choose from:

  • First-time buyer mortgages. You can apply for a first-time buyer mortgage with just a 5% deposit and fix your mortgage rate for between 20 and 40 years. Mortgages are flexible, so if you want to move home, you can take your mortgage with you or apply to borrow more money when you need it. You can also switch to another lender or product after 5 years without paying an early repayment charge.
  • Remortgages. If your existing mortgage deal is coming to an end and you’re looking to remortgage, you could switch to Perenna. Again, you can fix your rate for up to 40 years, and there are no penalties for switching again after the first 5 years.
  • Retirement mortgages. There are no age limits with Perenna mortgages. Instead, your mortgage application is assessed on your property value and ability to repay. That means you might free up some equity in your property to enjoy your retirement without having to move home or search for a specialist retirement mortgage lender.

Perenna is also working towards launching green mortgages. These reward homeowners if they choose to buy an energy-efficient home and/or if they make changes to their home that help the environment. Rewards will be in the form of a discounted mortgage rate for the whole mortgage term.

How to apply for a Perenna mortgage

Perenna is currently only offering mortgages to eligible borrowers on its mailing list, starting with those looking to remortgage. That means, as a first step, you’ll need to join the waiting list on the Perenna website and enter a few personal details, such as your name and email address.

What information is needed to apply?

When you apply for a mortgage, you’ll need to provide:

  • At least one form of ID. For example: passport or driving licence.
  • Proof of your address. For example: a recent utility bill.
  • Proof of income. For example: a recent payslip, as well as bank statements to assess your affordability.

Eligibility criteria

You can apply for a Perenna mortgage if:

  • You’re aged 18 or over.
  • You’re a UK resident.
  • You’re planning to buy or remortgage a home in England or Wales.
  • You have a good credit history.

You can use the mortgage calculator on the Perenna website to give you an idea of how much you could borrow.

Our verdict: Is a mortgage from Perenna worth it?

If you’re worried about rising interest rates and like the idea of locking in your mortgage rate for the long term, a mortgage from Perenna is certainly worth exploring. Unlike most mortgage lenders, you can lock in your rate for as long as 40 years, and there are no maximum age restrictions either.

However, keep in mind that longer term mortgage rates won’t always be the most competitive. This could become a bigger issue if interest rates start to fall again, as you could end up being locked into a higher rate. That said, you can switch your mortgage after the first 5 years without paying a penalty.

Before you decide, be sure to compare Perenna’s rates to other deals on the market. Also, speak to a mortgage broker who can help you find the right mortgage for your own personal and financial circumstances.

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To make sure you get accurate and helpful information, this guide has been edited by Michelle Stevens as part of our fact-checking process.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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