Perenna receives banking licence with restrictions
Perenna has received its banking licence with restrictions from the Prudential Regulation Authority & Financial Conduct Authority. This means Perenna is now an authorised bank, and once it confirms that its banking infrastructure is in place and its restrictions lifted it will offer long-dated fixed rate mortgages and eventually offer a complete suite of mortgage products that suit consumers.
The UK government, the Bank of England, the Tony Blair Institute and many other commentators have identified the benefits of a long-term fixed rate mortgage market can provide to UK financial stability and UK consumers, specifically supporting first time buyers onto the housing ladder. In addition, through Perenna’s long-term funding model the UK can finally develop an efficient and scalable green mortgage market. By fixing the payments for 30 years (or more) consumers will immediately see the benefit of home retrofits.
The UK is experiencing a housing crisis. In these times other countries have benefited from a model like Perenna to turn the fortunes of the country around for the better. Historic examples include Fannie Mae & Freddie Mac in the US post the Great Depression, the Pfandbrief banks in Germany in the aftermath of war and mortgage banks in Denmark after the great fire of Copenhagen.
Perenna will deliver these mortgage market innovations using its unique bank funding model, boosting growth by stimulating investment and increasing systemic stability. The Perenna business model will be the catalyst to resolve the UK’s productive finance challenge through the covered bond market channelling the trillions of pounds of insurance and pension monies into the UK real economy by improving the domestic capital markets, which to date has been a challenge.
Arjan Verbeek, CEO and founder of Perenna, says: “It is very exciting to be a bank that is authorised with restrictions, and it is a major milestone for the team. 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 SME and infrastructure. Perenna will support consumers with buying their first homes, moving home, supporting themselves in retirement, and help the transition to net zero. Perenna looks forward to working with other initiatives to increase private sector investment into the real economy addressing the structural challenges we face.”