New fintech plans to offer 30-year fixed rate mortgages

Digital bank Perenna says it has received its banking licence and plans to offer customers fixed-rate 30-year mortgages.

The digital bank has been granted a banking licence with restrictions from the Prudential Regulation Authority and the Financial Conduct Authority, adding that once its banking infrastructure is in place it will begin selling long-dated fixed-rate mortgages as well as a complete suite of home loans.

The business was co-founded by former BNP Paribas bankers Arjan Verbeek and Hamish Peacocke, and former Interbay Chief Executive Colin Bell.

Perenna Chief Executive Verbeek said: “The UK financial infrastructure requires significant innovation to get growth back and reduce inequality. Perenna will be the blueprint to deliver this, for mortgages as well as small business and infrastructure. Perenna will support consumers with buying their first homes, moving home, supporting themselves in retirement, and help the transition to net zero.”