Legal & General Mortgage Club has expanded its lender panel by introducing a range of long-term fixed-rate mortgages from Perenna Bank.
This partnership enables UK intermediaries working with Legal & General to offer Perenna’s unique mortgages, which are fixed for the entire term of 20 to 40 years and carry only a 5-year early repayment charge.
Perenna’s products are notable for their high accessibility, offering up to 95% loan-to-value (LTV) and up to six times a borrower’s income, subject to certain criteria.
This feature is particularly beneficial for first-time buyers often facing affordability challenges. The mortgages do not have a maximum age limit and are not tied to a standard variable rate (SVR).
Perenna employs a ‘Danish’ bank funding model, focusing on the covered bond market rather than short-term savings or deposits.
This approach allows Perenna to offer fixed rates for the full mortgage term, providing borrowers with stability and predictability in their monthly repayments.
Clare Beardmore, director at Legal & General Mortgage Club, said: “We pride ourselves on offering a range of mortgage solutions to our members that best suit their customers’ needs. Perenna is looking to provide certainty over customers’ monthly payments, and a range that opens up new options for borrowers.
“With recent volatility in mortgage rates, rising living costs and stubborn levels of inflation, long-term stability is something borrowers are searching for more and more.
“In this changing market, we believe it’s important to continue to expand our product offering and support advisers with new and innovative solutions, so they can best serve their clients. We are excited to see this innovative brand launch on our lender panel.”
Colin Bell, chief operating officer and co-founder at Perenna, added: “We’re excited to be launching our range of long-term fixed rate mortgages through Legal & General Mortgage Club.
“Customers will be secure in the knowledge that their monthly repayments are fixed for the long-term, whilst knowing they can also change their mortgage if and when they want to without any charge, after five years.
“At a time when mortgage affordability continues to be strained for first-time buyers, our products will help people get a foot on the property ladder by allowing them to borrow more in a sustainable way.
“We believe our products will go a long way to solving some of the mortgage market’s most common issues, and our partnership with Legal & General will help us achieve that goal.”
