Compare Mortgage Rates from Perenna Against the Market

Perenna is an innovative, fully licensed UK bank that officially launched its lending operations in late 2023. They were established with a clear mission: to completely shake up the UK mortgage market by introducing genuine long-term fixed-rate mortgages, heavily inspired by the highly stable Danish mortgage model.

Unlike high-street banks that fund mortgages using customer savings deposits, Perenna funds its lending through the issuance of ‘covered bonds’ to institutional investors (like pension funds). This unique funding structure allows them to offer mortgages that are fixed for the entire life of the loan - up to 40 years - protecting borrowers from the stress of rising interest rates and eliminating the traditional UK "remortgage cycle" every two to five years.

You can use our free mortgage-source tool below to compare the latest rates and deals from Perenna against the rest of the market.

Mortgage & Finance Products

Perenna’s product range is designed to offer maximum payment certainty without trapping borrowers in inflexible contracts.

 Lending Criteria

Because Perenna’s mortgages are fixed for the long term, they do not have a Standard Variable Rate (SVR). This fundamentally changes how they calculate affordability.

Income Flexibility and Multiples

The most significant advantage of Perenna’s model is its borrowing power. Standard banks must "stress test" your income to ensure you could still afford the mortgage if their SVR jumped significantly. Because Perenna’s rate never changes, they do not need to apply this harsh stress test. As a result, they can offer up to 6x your income (subject to earning over £50,000) or up to 5.25x for standard earners, helping buyers stretch their budgets in expensive areas.

Borrower Profile & Age

Perenna is famous in the broker market for having no maximum age limit. They believe that if you can prove the mortgage is affordable (using pension income or a RIO structure), age is just a number. They will lend to borrowers well into their 80s, 90s, and beyond, making them a phenomenal option for later-life lending.

Early Repayment Charges (ERCs)

The historical fear of a 30-year fixed mortgage is being trapped if you need to move or sell. Perenna solved this by capping their Early Repayment Charges at just 5 years. Even if you take a 40-year fixed rate, you can sell your home, port the mortgage, or switch to a new lender after the first 5 years without paying a single penny in ERC penalties.

Interest-Only Options

They offer Interest-Only mortgages up to 75% LTV. Uniquely, they allow the "Sale of Property" as a valid repayment vehicle, provided there is a minimum equity cushion in the home. They do not require a strict minimum income for this, focusing instead on the fact that the loan must be affordable on a repayment basis calculation.

Pros and Cons of Perenna

Customer Service and Reviews

Despite being a relatively new entrant to the market, Perenna has made a significant impact. At the Smart Money People Awards, they were named Best Newcomer and highly commended for Best Relationship Management.

Within the mortgage broker community, they are highly regarded for introducing genuine innovation to a stagnant market. Brokers appreciate that Perenna's underwriters are accessible and that their affordability calculators consistently produce loan amounts that high-street banks cannot match. Consumers who have left reviews frequently highlight the peace of mind that comes with knowing their mortgage payment will never unexpectedly jump by hundreds of pounds a month.

How to Apply

While Perenna occasionally allows consumers to join a waiting list directly, the vast majority of their lending is conducted through the intermediary market.

To access Perenna’s 6x income multiples, RIO mortgages, or specific New Build schemes, you must speak to an FCA-regulated mortgage broker. A broker will run your income through Perenna’s bespoke affordability calculator and compare their long-term fixed rates against the traditional 2- or 5-year deals offered by the high street to ensure it is the right financial strategy for your future.

Get started here to begin a free, no-obligation chat with a mortgage broker who specialises in Perenna’s product range and can help you secure the best deals from them.