Mortgage lender Perenna has received licences from the UK regulators to offer mortgages with fixed rates of up to 50 years.
The licenses have been awarded with restrictions by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
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The UK-based specialist lender is planning to initially provide home loans with interest rates for 30 years.
Under this, Perenna’s products will be available to borrowers who can access 95% loan-to-value (LTV) products.
The firm said in a statement: “This means we are inching closer to launching flexible 30-year fixed-rate mortgages to customers who can afford them and is a huge step toward realising our mission of creating a nation of happy homeowners.”
The lender, which plans to launch its first products within a period of six months, has secured around £35m from investors including IAG Silverstripe, reported Financial Times Adviser.
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By GlobalDataPerenna is anticipated to offer interest rates of 4 to 4.5% on the 30 to 50-year loans.
Perenna founder and CEO Arjan Verbeek was cited by Financial Times as saying that longer-term rates would help borrowers during the cost of living crisis.
Verbeek added: “Rates are going up and if you have a household budget to manage, you need to know what you’re paying on your mortgage every month.
“With inflation running high, this will take a chunk of the stress out.”
