UK Lender Perenna to Offer 50-Year Fixed Mortgages

In a move that is set to shake up the UK mortgage market, a new lender has been given the green light by regulators to offer mortgages with fixed rates of up to 50 years. Perenna, a UK-based lender, is initially planning to provide home loans that lock in rates for 30 years before introducing options that last for even longer.

Fixed mortgage rates for up to 50 years

This is a significant departure from the typical fixed rates offered by banks, which usually last for up to 10 years. Perenna’s products will be available to a wide range of borrowers, including first-time buyers, who can access 95% loan-to-value (LTV) products, as well as those who want to move, remortgage, or take out a mortgage in later life.

The loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Perenna’s rates are expected to be around 4% to 4.5% on the 30- to 50-year loans.

First-time buyers can access 95% LTV products

Perenna’s goal is to support consumers with buying their first homes, moving home, supporting themselves in retirement, and helping the transition to net zero. The lender is looking forward to working with other initiatives to increase private sector investment into the real economy, addressing the structural challenges we face.

Perenna is committed to supporting the transition to net zero

In a market where interest rates are constantly changing, Perenna’s long-term fixed rates offer a sense of security and stability for borrowers. This could be a game-changer for the UK mortgage market, and it will be interesting to see how other lenders respond to this new development.

The UK mortgage market is set for a shake-up

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