UK mortgage lending startup Perenna has raised $52 million within weeks of securing an unrestricted banking licence.
Perenna secured a restricted banking licence last year and raised a £25 million Series A from Silverstripe IAG.
Full FCA and PRA approval along with the new equity investment from Silverstripe and previous investors will enable the firm to introduce its long-term fixed rate mortgage products to the UK, a market typically dominated by variable and short-term fixed rate packages.
Despite challenging conditions in the wider early stage funding market, Perenna has riased a total of $90 million since its inception in 2020.
Arjan Verbeek, CEO and co-founder, Perenna comments: “This successful fundraise, set against the backdrop of a challenging fundraising market is a clear testament to the strength of our unique approach and the significant opportunity to reimagine the structure of the UK mortgage market."
Proceeds from the fundraise will see the business launch the Perenna Mortgage, offering 20-30 year fixed rate products, to a 5,000 + waitlist. Eligible waitlist applicants will be invited to apply over the coming weeks with the business opening up to the wider public later this year.
At the heart of Perenna’s approach is a funding model that, rather than relying on retail deposits, is driven by the issuance of covered bonds that unlock access to the UK mortgage market for institutional investors seeking long-term stable income.
Says Verbeek: “With over £3tn of investor monies having no efficient access to the UK mortgage market, our covered bond platform will unlock this, enabling them to generate sustainable risk-adjusted returns whilst also delivering better outcomes for homeowners across the country."