Perenna has secured $52m in a new funding round aimed at launching its long-term fixed rate mortgage products in the UK.
The funding, led by Silverstripe Investment Management, brings the company’s total raised to nearly $90m since 2020.
This latest capital injection comes despite challenges in the early stage funding market and indicates strong investor belief in Perenna’s disruptive approach to the UK mortgage sector.
Central to Perenna’s strategy is a unique funding model that relies on issuing covered bonds.
The model is common in other European countries like Denmark but is the first of its kind in the UK.
The aim is to tackle several structural issues in the UK mortgage market, including affordability for first-time buyers and the risks associated with interest rate volatility.
The new funds will be used to roll out Perenna’s mortgage products, offering 20-30 year fixed rates, initially to a waiting list of over 5,000 people.
Arjan Verbeek, CEO and co-founder of Perenna, said: “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.”
Hamish Peacocke, CCO and co-founder, added: “The UK is a clear outlier when compared to other advanced economies like the US and Denmark. The market is in dire need of reform at a time when homeowners are battling a range of challenges.”
The funding will also enable Perenna to launch its mortgage products to the general public later this year.
