Legal & General Mortgage Club has added a range of mortgage offering from Perenna Bank to its lender panel.
The partnership will see Perenna’s long-term fixed-rate mortgages rolled out in the UK via intermediaries working with Legal & General.
Perenna’s mortgages are fixed for the full term, between 20 and 40 years, with only a five-year early repayment charge (ERC).
Customers can access up to 95% loan to value (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.
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.
This allows the firm to fix its rates for the full term of the mortgage. The lender does not apply higher rates to stress test borrowers to determine their ability to afford a mortgage, as it has no reversion rate.
The lender’s goal is to provide borrowers with certainty over their monthly repayments and to remove any concerns around changing rates, whilst giving them the flexibility to change their mortgage when the time is right for them.
Through the partnership Perenna will support a range of customers from helping first-time buyers onto the property ladder to providing a mortgage option to those approaching or in retirement, with no end-of-term age limit.
Legal & General Mortgage Club director Clare Beardmore said: “We pride ourselves on offering a range of mortgage solutions to our members that best suit their customers’ needs. Perenna is looking to provide certainty over customers’ monthly payments, and a range that opens up new options for borrowers.”
Perenna chief operating officer and co-founder Colin Bell said: “We’re excited to be launching our range of long-term fixed rate mortgages through Legal & General Mortgage Club. 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.”
