Legal & General Mortgage Club announces addition of Perenna to lender panel

Legal & General Mortgage Club has added a range of long-term fixed-rate mortgages 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% 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 and giving them confidence that their monthly payment will not change, to providing a mortgage option to those approaching or in retirement, with no end-of-term age limit.

Long-term fixed-rate mortgages won’t be suitable for every borrower, but they may provide underserved markets with an innovative new option, and good customer value.