Target Group, the FCA-regulated business processing and software provider, has today announced that the fintech mortgage lender, Perenna, has become the first client of its Mortgage Hub.
The partnership, which is set to launch later this year, will see the Mortgage Hub powering Perenna’s mortgage offering; allowing it to provide decisions-in-principle within 20 seconds.
Perenna will soon launch a range of flexible 30-year long-term fixed rate mortgages in the UK, providing consumers with the option to lock in their mortgage interest rate for several decades. This is set to create significant disruption in the market, as borrowers will no longer have to repeatedly refinance to remain on a competitive mortgage deal. They will also benefit from certainty over their mortgage repayments for the lifetime of their loan. Thanks to its integration with the Mortgage Hub, Perenna will also be able to provide prospective borrowers with a decision-in-principle within seconds, ushering in the next phase in the mortgage application journey.
Leveraging Open Banking and API technology, the Mortgage Hub is making the cumbersome mortgage offer process far more efficient, by eliminating the need for repetitive data entry. Its approach means borrowers can benefit from a decision-in-principle in just seconds. The software launched earlier this year and has the aim of providing agility and increasing accuracy to help improve the user experience.
Stuart Anderson, chief commercial officer, at Target Group, commented: “Moving house is a priority for many following the pandemic, but for most, the mortgage application process is painful, with the requirement to provide the same information multiple times. Slow decisions are dogged by legacy technology - it’s time that changed.
“Our partnership with Perenna will transform the market for the better, providing speed, flexibility and certainty to both intermediaries and consumers - making the process not only more efficient, but more enjoyable too.”
Colin Bell, Chief Operating Officer at Perenna added: “Perenna is bringing flexible long-term fixed rate mortgage to the UK to help create a nation of happy homeowners. Our mortgages offer borrowers better terms than short-term alternatives, which leave them exposed to sudden repayment increases and high refinance costs. Our partnership with the Mortgage Hub marks another exciting landmark in our journey to market and will see us providing customers with near-instant decisions about their borrowing options.