Will your age stop you from getting a mortgage? 

Growing older is part of life.  And often, with age, financial security becomes more important than ever.  

For many of us, owning a home is a huge part of that security. And for most people, that means getting a mortgage.  

However, as retirement approaches, homeowners in the UK may find themselves in a tricky situation if they want access to a mortgage. Often the options on offer to them are limited.  

You may have read stories about people who aren’t able to shop around or get a mortgage at all, simply due to their age.  Retirement should be a time to relax and enjoy life away from the pressures of the daily grind. And yet, many may find themselves worrying about their home. 

So why is this?  

Many lenders have an end of term age limit which restricts mortgage options. Look at the example below to see how. 

Borrower 

Age at time of applying: 65 years 

Mortgage term requested: 20 years  

Age at end of term: 85 years 

Many high street lenders will not offer the term asked for.  That’s because they typically have a maximum age of 75-80 years at the end of term¹.

So why can having a mortgage in later life be important?

There are many reasons why people want a mortgage into retirement. It could be to support their lifestyle or to pay for home improvements. Or for some, it’s simply to allow them to stay in the home they love.  

Here are a few examples to bring this to life.

Example 1 

Ann wants to extend her mortgage term so she can reduce her monthly mortgage payments.  

Ann is 65 and has 10 years left on her mortgage. She has a pension income of £25k. She is currently on a standard variable rate of 7.99%.    

Her priority is to have more disposable income. She does not want to have to cut down on things at this stage in her life.   

Example 2 

John and Beth want to pay down their debt as soon as possible. 

John, 54, and Beth, 52 are on an interest only mortgage, with no repayment plan. Their joint income is £80k.    

They don’t want to downsize as they love their property and location. They are looking at a capital & interest repayment product. They would like to keep their monthly payments low. 

Example 3 

Melanie has recently separated from her partner and needs a mortgage that helps her meet affordability requirements. 

Melanie is 56. She is a nurse with an income of £45k.  

Her priority is to remove her partner from the mortgage and avoid having to sell the family home and downsize.   

As the mortgage will rely on her income alone, affordability as well as end of term age limits are stumbling blocks for her.  

How can Perenna help? 

Here at Perenna, we want to help homeowners make the most of their retirement. And for us, age is just a number. That’s why we’ve removed age limits. Instead, we assess mortgage applications on property value and whether the monthly payments are affordable (maximum loan to value limits may apply). This could make a huge difference for each of the examples above. It could be the difference between the borrower achieving their goals and not.  

Want to find out if Perenna could help you? Why not use our calculator to find out how much you could borrow? It’s completely confidential, does not affect your credit score and should only take a few minutes. 

You could lose your home if you don’t keep up your mortgage repayments.

¹Maximum age at the end of the mortgage term (Repayment mortgage examples)  

Nationwide – 75 years old – https://www.nationwide-intermediary.co.uk/lending-criteria/general#max
Halifax – 80 years old https://www.halifax-intermediaries.co.uk/criteria.html;
HSBC – 80 years old https://intermediaries.hsbc.co.uk/criteria   

Information correct as at 16 October 2023 

Correct at time of publishing.

Shining a light on the impact SVR has on affordability

When comparing mortgages, do you focus on the headline rate?

If you do, you’re not alone. But, by looking at the ‘teaser’ rate of a short-term fixed rate (typically between 2 and 5 years), you may be missing the bigger picture. Did you know that the amount you can borrow isn’t usually based on that headline rate? The rate that is actually important in working out how much you can borrow is usually the rate you are charged after the fixed rate period ends. This is known as the ‘reversion rate’. You’ll often see it referred to as ‘standard variable rate’ or SVR.

So, let’s talk more about that…

Standard Variable Rate (SVR)

Fixed rates are a popular mortgage choice. But, when you choose to fix your rate over a shorter-term, you should take note of what happens after the fixed rate ends. The product usually defaults to a higher rate. You may see this next rate referred to as:

• Standard Variable Rate (SVR)
• Follow on rate
• Reversion rate
• Lender’s standard rate

This rate can change at any time and is set by the lender.

The reason this rate is so important is because lenders are required to use it when working out how much customers can afford to borrow.

They use this rate to estimate how much your monthly payments would go up by and check that you can afford it. Additionally, in the UK, lenders must check if you can still afford the mortgage amount you have asked for by calculating your payments using a rate that is at least 1% higher than their current reversion rate. This is called stress testing. Sounds complicated? Don’t worry, let us simplify this for you.

A quick example of how this affects the amount you could borrow

• The ’teaser’ rate on a 2-year fixed product is 5.50%
• The SVR is 8.0%
• The lender will assess whether you can afford monthly payments at a rate of 9.0%

So, in this example, you may be able to afford the monthly repayments at 5.50%. But, to ensure they’re lending responsibly, the lender checks your affordability at 9.0%. This could reduce the amount you can borrow.

Let’s help you to understand by using example numbers. We’ll look at a mortgage of £200,000 over 30 years:

In this scenario, the monthly payment during the fixed rate would be £1,136. But, the lender would need to check that you can afford monthly payments of at least £1,609. That’s £473 more!

Please note, all figures used above are for illustrative purposes only. All information correct at time of publication.

Check how much you could borrow with Perenna

At Perenna, the rate is fixed for the whole term. It doesn’t change to a variable rate. This means we don’t need to stress test your payments. We know exactly what you’ll need to pay each month.

Why not use our calculator to find out how much you may be able to borrow? It’s completely confidential, does not affect your credit score and should only take a few minutes.

You could lose your home if you don’t keep up your mortgage repayments.

The subject of mortgages can be confusing. There are so many on offer and it may be hard to know what’s right for you.

A popular choice is a fixed rate mortgage. This means your monthly payments are guaranteed for a set amount of time. If you like the idea of a fixed rate mortgage, then you have a decision to make. How long do you want to fix your payment for? Of course, there are different options available in the market. You can choose to fix the rate over a shorter term (usually between 2 and 5 years) or a longer term (which could be up to 40 years).

In the UK, there aren’t many longer-term fixed rates out there. We’re changing that with the Perenna mortgage.

Like with anything new, we know it can take time to feel comfortable with a new offering. We appreciate that not everyone fully understands how long-term fixed rates can benefit them. So, we think it’s time to shine a light on some of the myths we’ve come across and show how Perenna’s innovative product can address these. Here are just some of the comments we’ve come across…

Myth 1: They’re not flexible

We say:
Typically, longer term fixed rates offered in the UK have not given borrowers the flexibility they may want. Ten-year fixed rates may come with long early repayment charges which can restrict borrowers.

However, a Perenna mortgage is different. Our product combines long term stability with flexibility. You’ll know exactly what you must pay each month for your whole mortgage term. No teaser rates, no rising payments, no shocks.

Plus, our mortgages are designed to fit around your life. That’s why you can take your mortgage with you when you move home or change your mortgage to another lender or product without charge, after 5 years.

Myth 2: Not many people are interested

We say:
Thousands of people on our waitlist have shown that they are interested. Plus, millions of people across US and Europe already benefit from products like this.

So, why shouldn’t these mortgages work in the UK? Our mortgages have been designed to help:

• first-time buyers looking to borrow a little bit more
• homeowners seeking stability when remortgaging
• later life borrowers wanting to release equity from their property

Myth 3: They’re expensive

We say:
You can’t compare apples and oranges.

Whilst a Perenna mortgage may have a higher rate than some other ‘teaser’ rates on offer, you need to think about how they may compare longer term. For example, if you’re thinking about fixing your rate over a short term, you’ll need to consider what happens when that deal comes to an end. Will you be able to afford a new mortgage if rates rise or your circumstances change? We want to remove this risk.

We don’t think homeowners should have to worry about rates changing or being denied access to mortgage products in the future. That’s where a Perenna mortgage comes in. By fixing your rate for up to 40 years, you’ll know exactly what you must pay each month for your whole mortgage. Can you put a price on peace of mind?

Myth 4: Rates will come down so no need to fix for longer

We say:
Everyone loves a good deal. But is it wise to hazard a guess on what could be your biggest financial decision? Instead of trying to predict the future, you will know exactly what you’ll pay each month with a Perenna mortgage. This puts you back in control of your finances so that you can plan for your future.

Yes, rates could come down, or your circumstances could change. And that’s why our product comes with flexibility as standard. If you want to change, that’s no problem. You can do so without charge after 5 years.

Could a Perenna mortgage be for you?

If you’d like to find out how much you could borrow, why not use our mortgage calculator. It’s completely confidential, does not affect your credit score and should only take a few minutes.

You could lose your home if you don’t keep up your mortgage repayments.

We are delighted to share that we have now received our full banking licence from the Prudential Regulation Authority and Financial Conduct Authority.

This marks a key milestone for us, allowing us to introduce our innovative long term fixed rate mortgage products to the UK.

Unlike the US, Denmark and other European countries, the UK market is dominated by variable and short-term fixed rate products. They leave mortgaged households dangerously exposed to rising rates and first-time buyers struggling to get on the housing ladder. Due to this, more than a million UK households are facing an increase of over £500 to their monthly mortgage costs by the end of 2026.¹  In the UK, borrowers are forced to speculate on their biggest debt due to the limited choice of products, which is not the case in other countries.²

Our unique proposition is created by a funding model which relies on issuing covered bonds to investors seeking long-term stable income, such as pension funds and insurance companies. This allows us to develop a range of innovative products aimed at addressing structural problems in the mortgage market for first time buyers, second steppers and later life homeowners.

Arjan Verbeek, CEO & Co-Founder, Perenna, said ‘’We’re introducing much needed structural change to the UK. In other countries, billions of pounds of pension savings are channelled into the real economy using covered bonds. Together, our unique funding model and banking licence will enable us to do exactly the same in the UK and unlock the housing market, an important part of GDP.”

Colin Bell, COO & Co-Founder, Perenna added “Our mission is to create a nation of happy homeowners. We’re excited to offer our flexible products to consumers who, for too long, have been left underserved. Our product offers improved affordability, certainty of monthly payments, and flexibility through low ERCs. We want people to get on with their life and not worry about their mortgage product.”

The first step in our journey is to offer mortgages exclusively to eligible borrowers on our mailing list. If you’re looking for a mortgage, why not use our calculator to find out how much you may be able to borrow? It’s completely confidential, does not affect your credit score and should only take a few minutes. And if you’d like to be considered for our exclusive launch, simply sign up to our mailing list at the same time.

We look forward to changing the UK mortgage market for the better.

Pictured above, Perenna Founders from left: Colin Bell, Arjan Verbeek and Hamish Peacocke

Notes
1. https://www.bankofengland.co.uk/financial-stability-report/2023/july-2023
2. https://hypo.org/app/uploads/sites/2/2023/07/EMF-Quarterly-Review-Q1-2023.pdf

Meet Arjan, Perenna CEO and founder, a man on a mission to fix the housing market and create a nation of happy homeowners. Originally from the Netherlands, Arjan moved to London in 1993 after obtaining a master’s degree in econometrics from Tilburg University. Here, he joined the Royal Bank of Canada’s management trainee programme and started a career in financial services. A career that has included setting up unique funding programmes for various institutions in the billions of pounds and assessing & comparing mortgage markets internationally including Canada, US, Australia, and Denmark to name a few. He has held positions as Managing Director for Securitisation and Covered Bond teams at BNP Paribas, Director in the Asset Securitisation group at Barclays Capital and Vice President at Moody’s analysing mortgage risk. Most weekends, you’ll find him at Stamford Bridge watching Chelsea, a romance that started after moving to Barons Court in 1995 and following the weekend migration of football fans going to the match.

Why did you start Perenna?

We started Perenna so we can create a structural solution to structural issues in the UK, starting with the mortgage market. We believe if you can afford a home, you should be able to get one, and consumers should never need to worry about refinancing and the risks from rising interest rates. Time and time again consumers are asked to speculate on typically the biggest debt they will undertake in their lives, and we think that’s wrong.

I believe homeownership is a way to a happy, prosperous life, and I believe homeowners contribute to a better, wealthier and fairer society. But it must be achieved responsibly. Borrowers should be assessed on their affordability and not be exposed to unnecessary risks. I have spent my entire career focusing on mortgage markets. I witnessed first-hand the lead-up to the financial crisis, how it unfolded and how it affected people’s lives. Those events inspired me to think about changing the mortgage market for the better and improve conditions for borrowers.

I found a solution in Denmark. During my time at Moody’s, I worked with Danish mortgage banks and gained insight into the market’s workings. It’s a stable and resilient system with a 200-year-long history of operating. Where UK largely uses short-term deposits to fund lending like mortgages, Danish mortgage banks use covered bonds which are match funded to mortgages. The big buyers of covered bonds are pension funds and insurance companies who are seeking exposure to long-term fixed income (to match their long-term fixed liabilities). I concluded the model might work in the UK, but it still took several years to design a model that could work. The result became Perenna: A mortgage bank funded by covered bonds and aligns with the interest of consumers.

Why are covered bonds an exemplary method for funding mortgages?

Covered bonds enable banks to fix the mortgage interest rates over long terms, like 30 years. Fixing the interest rate removes risk from consumers and provides certainty over their monthly mortgage payments. Consumers should not be exposed to the uncertainty of interest rate changes (and the arbitrary rate setting by lenders via SVR). The tail risk of this uncertainty has played out in recent months. Homeowners who took short-term fixed rate mortgages will experience significant hardship when their fixed terms end. In addition, aspiring homeowners struggle to obtain the right product for them. This chaos does not happen in a stable, well-functioning mortgage market. Lenders in countries with long-term fixed-rate mortgages, like the United States or Denmark, can continue lending through economic cycles creating stability in the market and ensuring consumer protection.

The buyers of Perenna’s covered bonds will primarily be pension funds and insurance companies who need exposure to long-term fixed income, which they can get through mortgages. Take an example of a pensioner who needs £500/month to live. If we can match that person with someone who pays £500/month on their mortgage, we solve both the mortgage crisis and the pension crisis in one go. That is the potential of Perenna’s platform and why covered bonds are such an excellent funding instrument for mortgages.

Why hasn’t this been done before?

No one has had the incentive to do it. Incumbent banks are doing fine within the current system, and mortgage brokers have designed their business model around 2- and 5-year renewal cycles. Consumers still demand mortgages under the existing market offering, as that is all that is available to them.

Regulation is another reason. There is a ceiling on how much covered bond funding a typical UK high street bank can take due to their deposit-taking model. Therefore, a new type of banking model needs to emerge.

Having said that, non-banks such as Habito and Kensington have started to create novel long-term fixed rate offerings like 30-year fixed rate mortgages. Whilst they are funded slightly differently than us, it’s a great start to developing better products for consumers.

With a Perenna mortgage, we will be initially offering a 30-year fixed rate mortgage, with low early repayment charges (5 years), and will be portable & transferable. We want our product to flex around you, not the other way around.

How has your career changed from big bank to start-up founder?

Being a start-up founder is a wildly different experience. I started trying to drive change from inside the banks I worked for. But those types of organisations are like supertankers. It’s difficult to change direction. I quickly realised that I could only drive meaningful change by creating something new – a start-up from the outside.

We started Perenna as a three-person team, but forming a bank requires many different skills. Now, a couple of years in, we’re more than sixty employees. Growing this fast creates new challenges. I’m thinking a lot about building culture and aligning new hires. Perenna exists to challenge the existing market, to improve and inspire change. It’s essential that new hires share our ambition and are willing to challenge their own experience. Otherwise, we will end up copying what everyone else does.

I’m also thinking about how we form partnerships and collaborate with other companies and players in the industry. Perenna is a mission-driven company that exists to create a nation of happy homeowners. We want to work with any party who shares our vision and can help us realise it.

What does the future hold for the UK?

We’re finally coming out of the post-financial crisis period with unusually low-interest rates into a historically normal interest rate environment. It’s a hard transition, but it was bound to happen. At the same time, the UK is experiencing other challenges at home and abroad and it can be difficult to navigate amidst this uncertainty. The recent events after the mini-budget and subsequent turmoil in the markets made it evident to everyone that we need a more stable mortgage and pension system. Perenna has a big role to play in that transition. The future is bright for homeowners and the UK, but only if we recognise structural change is needed.

Correct at time of publishing.

We are delighted to share that Perenna has been awarded a banking licence with restrictions by the PRA and the FCA.

This means we are inching closer to launching flexible 30-year fixed-rate mortgages to all who can afford them and is a huge step toward realising our mission of creating a nation of happy homeowners.

Previously, we’ve talked a lot about the benefits of fixed-rate long-term mortgages, and here’s a quick reminder on why we can’t wait to offer these to everyone:

➡️ Accessible – Borrow more based on what you can afford; due to the length of the term customers are not required to be assessed under higher interest rates which in turn limits borrowing amounts

➡️ Adaptable – Our early repayment charge is short, the product is portable; the product flexes to you, not the other way round

➡️ Absolute – Payments are fixed for the whole mortgage term!

Under the flexible 30-year fixed rate product, we will be offering mortgages with up to 95% LTV. Our approach enables us to help more first-time buyers onto the property ladder, provide mortgages to people in retirement, and protect all customers against the uncertainty of increasing interest rates.

We are all experiencing significant increases in our daily costs. From steeper food prices to rising energy bills. The last thing we want to face is higher mortgage costs because of the way UK mortgages are designed – for the short-term. Perenna is the solution that will help you and your family achieve financial stability on usually your biggest outgoing – your mortgage.

We have thousands of people already signed up to the Perenna waitlist. If you want a Perenna mortgage, Click here to join waitlist.

Correct at time of publishing.

Are you saving up for a deposit or thinking about managing your money better? Then this blog post is for you.

We recently interviewed Charlotte Jessop, also known by her Instagram handle “Looking After Your Pennies”, about financial education, green investing, and her journey from maths teacher to finance blogger with thousands of followers.

How did your time as a teacher equip you to life as a finance blogger?

My background is as a maths teacher. When I was teaching, I needed to put maths into real-life situations to provide context to the learning, but textbooks always use simplified and unrealistic scenarios. While applicable at a basic level, it’s not particularly relevant to real-life.

For topics such as compound interest on the maths curriculum, I would look at how this works in the stock market as an example, or how it works for depreciating assets, like a car, to provide actual practical knowledge to the students I was teaching.

I even invited a financial adviser for a couple of lessons with a challenging class. I’ve never seen my students listen so intently or ask so many questions. That moment was an epiphany – it was clear to me that not only is there a need for better financial education, but there is also a thirst for this type of knowledge.

The result? Well, I decided to marry the worlds of teaching and learning about finances creating Looking after your pennies – the fact that it’s proven so popular shows there is so much demand for this type of information to be easily accessible.

What do you aim to achieve through the Looking After Your Pennies platform?

My mission is to educate as many people as possible about their finances.

I’ve observed that my followers usually fall into one of two categories:

1. They’re oblivious as to how money works, or
2. They’re willing to pay someone else to look after their finances for them.

I aim to create a healthier middle ground where money management becomes a simple task and empower people to make confident decisions about their money with good information to back it up.

How do you think the pandemic has impacted people’s financial wellbeing?

Ultimately, this depends on who you ask. For some, lockdown life on furlough meant they were spending less and saving more. For others, it’s been a stressful time with job insecurity and financial challenges.

The universal component here is that everyone has learned something about their finances – either their saving potential or the fragility of their current financial situation.

How has the advice you’ve given changed since the beginning of the pandemic?

As things got worse during the pandemic, including the economy and finances, the need for Looking after your pennies just increased. When we first started the blog, it was more about providing people with practical tips to help them save money. Then, at the peak of the pandemic, it was all about helping people survive this challenging time.

Now, people realise that we’re heading towards tougher times as energy prices rise, inflation reaches higher levels and national insurance contributions increase. Many people may now need to readdress their finances, make a bit of extra cash, and look to maximise their savings.

What type of guidance do you think people will be looking for this year?

Our lives have been on hold for the past two years, but we can’t be stuck in our pyjamas forever! With restrictions easing, people will want to start travelling again, and I expect many will be trying to find out how they can best save money for a holiday.

At the same time, we’re moving into an unprecedented time for many consumers. Inflation is high, and interest rate rises are now a reality. I bought my home in 2012 when interest rates were 5%(considered good at the time) compared to today’s incredibly low interest rates.

We’ve become so accustomed to this low interest rate world, and there’s a whole generation of people who have never seen rates at 5% or more. These individuals will need to know all about what rising interest rates mean for them and what to do if they are planning to step on the property ladder or remortgage, for instance.

What do you think is the best first step for someone wanting to rejuvenate their finances?

Every time I get the ‘I’ve fallen off the financial wagon’ feeling, I go back to writing down my income and expenses. The action of writing down what I earn shows me exactly how much I’ve got to enjoy, while setting out my expenses tells me what I’m doing with that income. This simple exercise can help find the disconnect between intentions for money and what really happens.

How can I deal with my finances and be eco-friendly?

I love this topic because I’m quite lazy and like to do things that are good for the environment without having to do the small things, like washing out our jam jars. What I mean by that is I like to make financial decisions that have a positive impact and that make you feel good about your efforts to support the green agenda.

I’m open about the fact that my pension and investments are in ethical places. I think it’s sensible to put my money in places that are making positive steps towards tackling climate change without me having to slog over the small things.

As far as I’m concerned, anything green or eco-friendly is the future. There’s going to be a point where we can’t use these finite, fossil-fuel resources anymore. I’m not worried about this being a fad either, so I might as well make a start by taking steps to support green initiatives.

Having your pension invested in something green has a much more significant impact on CO2 emissions than things like reducing your travel on planes, going vegan, taking the bike to work, or reducing your water consumption. If you put your money into an ethical pension fund, rather than just leaving it where your boss thinks it is giving a good return, not only is it having a much more significant impact, but you can feel like you are playing your part in tackling climate change too!

Want to find out more about how you can improve your finances? Click here to visit the Looking After Your Pennies website.

Correct at time of publishing.

Meet Dan, our cap-wearing tech-guru and CTO! Stemming from a line of drummers, Dan is an avid musician who can play the guitar, bass, violin and, of course, the drums. We could have lost him to a career as a rockstar before Perenna started. Luckily for us, another upcoming Devon band, Muse, stole the local spotlight and rose to become international megastars. Thank you, Muse, for leading Dan down a career path to becoming our CTO. We’re not sure what we’d do without him.

Quick Questions

Who is your favourite musician/band?
I have a broad music taste – it can vary from Hans Zimmer to some Jazz/Blues to Heavy Metal. It all depends on the time of year, my mood and whatever’s happening around me. Today, I’m listening to Archspire, a Canadian technical metal band. But I could be listening to something very mainstream next minute.

Apple or Microsoft?
I would have to say both! I’m a heavy Apple device user, but we’re in the middle of building some parts of our platform using Microsoft, which is the best option for us for now.

Steve Jobs or Bill Gates?
I would choose Steve Jobs every time. Mainly for all of his personality quirks. I’m aware that he wasn’t always the most pleasant person, but he cared deeply about his designs’ aesthetics and how people would feel about the products he was creating. Steve Jobs ensured that the product was the best it could be. I find him inspiring. Bill Gates developed Windows to solve a problem and get as much money as possible.

Who’s your favourite Star Wars character?
Han Solo, because everyone’s got a little bit of space pirate in them.

What three things would you bring to a desert island?
I would bring a guitar (with its lead and headphones), an iPad mini and a solar charger. As long as I’ve got solar power, I can power my iPad, read my kindle and record songs on the guitar. Someone could eventually come across lots of interesting music.

What’s your best purchase in the last year for under £100?
A home pod mini (Apple) that sits on my desk. It’s a good speaker, works with all Apple devices, is small and portable and just a great little thing.

How many hats do you own?
I own an excess of 40 hats; this includes caps, flat caps, beanies, trilby’s, genuine handmade Texan cowboy hats and a bowler hat. I couldn’t pick a favourite, but I tend to gravitate towards a flat cap. My hat collection continues to grow as I have two handmade hats on order.

What’s one thing we don’t know about you?
I was born and bred in Devon, and in my 20’s I gigged around there. We even got to gig with the guys from Muse. As everyone knows, they became global megastars. The band I was in wasn’t quite as successful! Our singer used to go to school with the lead singer (Matt Bellamy), and the bass player (Chris Wolstenholme) used to work in the music shop in Torquay that we visited frequently.

Why did you join Perenna?

I was keen on working somewhere with a mission that could positively impact people. Perenna’s mission, creating a nation of happy homeowners, is the one that makes me want to get out of bed in the morning, and I can see how it can fundamentally change the life of a large group of people.

We can fix things that are fundamentally wrong with mortgages at the moment, for example, people becoming mortgage prisoners getting stuck on bad products or even being rejected when they could afford it. Perenna’s offering will create a ground shift in the entire industry, and we can do it without lending our customer’s own money back.

When someone offers you something exciting where you can see its potential for making a difference to people, it’s difficult to refuse the opportunity! If you enjoy your job and where you work, it brings drive and means it’s easy getting up in the morning. The technical challenges are exciting too.

What led you to a career in technology?

I’ve always been fascinated with taking things apart, reassembling and improving them. Getting into computers allowed me to do exactly that.

I was attracted to the role of Chief Technology Officer because I enjoy supporting people to succeed with technology. I think it’s important to remember that tech expertise varies from person to person. I see it as my job to make sure that everyone across the organisation is comfortable using the available tools and operating as efficiently as possible.

What is your best travel memory?

Orlando Florida! I love it there and have been going back every year since 2015. For three weeks of the year, my wife and I forget about everyday life and go to the theme parks/soak up the atmosphere. I even got to fly the Millennium Falcon, which was a big bucket list tick! It’s easy to become bogged down with the pressures of life, but it’s essential to relax and have fun sometimes.

Could you give us a fun tech fact?

Technology is never perfect – imperfect humans designed it, so never expect a perfect product.

Correct at time of publishing.

The UK Government recently launched its and Buildings Strategy, which sets out how the UK will decarbonise residential homes and commercial buildings to reach net-zero carbon emissions by 2050.

A critical component of the strategy is making homeowners aware of their home energy consumption. Currently, the easiest way to find this information is in an Energy Performance Certificate (EPC). EPC’s were first used in 2007 and are now required whenever a home is built, rented or sold. But what is an EPC, how can you get one, and why do you need one? Read this blog post to find out.

What is an EPC?

An EPC is a certificate that tells you how energy efficient a building is by rating it from A (very efficient) to G (very inefficient). It contains information about how the construction of the home affects its energy usage and will tell you how expensive it is to heat your property and what its annual carbon emissions are likely to be.

Based on the information collected on the building, the EPC will recommend a range of measures to upgrade the building and make it more energy efficient. It can recommend simple changes, like insulating water tanks and pipes, through to more significant structural updates such as internal wall insulation or installing solar panels.

Why is an EPC relevant to me?

EPC’s are relevant because it’s great to know your energy use at home and save energy for the good of the planet and humanity. In addition, EPC’s are required by law whenever a home is rented, sold, or built.

Homeowners also need to be aware of the Minimum Energy Efficiency Standard. These regulations dictate that residential landlords are required to ensure any home they let is rated EPC E or higher. This minimum is likely to increase to a C rating by 2028 according to new Government proposals. Landlords across the UK will need to ensure they remain compliant with the rules to continue letting their homes.

Soon it could be challenging to get a mortgage for properties with inefficient EPC ratings. The Department for Business, Energy and Industrial Strategy (BEIS) have plans to make mortgage lenders report on EPC performance of the homes in their loan books. The policy proposals would also encourage lenders to bring all homes in their portfolio to EPC C by 2033. If put into action, these policies could impact the value of homes with poorer energy performance.

How can I get an EPC?

You can order an EPC assessment from an accredited Domestic Energy Assessor. The assessor will visit your property to inspect the building, analyse heating and water systems and survey the sizes of rooms, floors, corridors, windows, doors, and fireplaces. The inspection is usually performed within an hour and is valid for 10 years.

Correct at time of publishing.

Homeownership is a dream of many young people in Britain, but it is a life goal that can take a significant amount of financial planning and resources to make come true. For those yet to step onto the property ladder it can be especially difficult given the rate at which house prices continue to increase in many parts of England.

However, while buying a home is likely to be the biggest investment of many people’s lives, it is not unachievable, and many thousands of people buy their first home each year.

One way they do it is through the Help to Buy scheme, which has been a popular route into homeownership since its launch in 2013. In fact, close to 300,000 properties have been purchased using a Help to Buy Equity loan since it began.

What is Help to Buy?

The Help to Buy Equity Loan is a loan from the Government which can help make it easier for some people to buy their first property. It does this by allowing buyers to step onto the ladder with as little as a 5% deposit and by making it a bit easier to pass the affordability tests put in place when applying for a mortgage. Someone using the scheme can borrow a maximum of 20% (or 40% in London) of the value of their desired home from the Government, meaning they only need to borrow around 75% from a traditional lender.

A buyer purchasing a £200,000 home with Help to Buy would pay:

• A £10,000 deposit
• Then the Government provides a £40,000 equity loan
• Meaning the remaining £150,000 is provided by a normal mortgage lender

The 20% Help to Buy loan is interest free for the first five years but then starts charging interest, meaning borrowers will effectively have two mortgages unless they remortgage onto a new mortgage and repay the help to buy element.

Help to Buy can be helpful for some buyers, however, Government recently introduced changes to the scheme which means anyone using it must be purchasing their first home. If you’re buying as a couple, both people must meet the criteria. Properties bought through Help to Buy must also be new-build and purchased from a homebuilder registered with the scheme. The property value also needs to be within the Government’s regional price caps, which are outlined below.

Are there better ways to step onto the property ladder?

The recent changes to the Help to Buy equity loan have made it more restrictive and limited the types of buyers who can benefit. And, while it will continue to be a good option for some people, the scheme has been criticised for potentially being overly expensive and unnecessarily limiting the types of homes first-time buyers can access. Also, if you use the help to buy scheme then you need to remember that part of the equity growth goes back to the scheme and not to you.

You can read more about the risks of Help to Buy in this blog post Is Help to Buy worth it? 

Fortunately, there are other options…

One alternative is the Government’s new mortgage guarantee scheme. The scheme announced in March 2021 has helped incentivise high street mortgage lenders to offer 95% loan-to-value mortgages. This has boosted the supply of mortgages suitable for buyers with 5% deposits, but while the Government guarantee has helped improve the availability of low-deposit products (a bit like the Help to Buy scheme did), it does not tackle the tough affordability tests applied to mortgage applicants.

Another option for first-time buyers could be a fixed-for-life mortgage. As the name suggests, the interest rate on these mortgages is locked for a much longer period of time than for traditional UK mortgages – which typically have a fixed term of about two or five years. By fixing the interest rate for 30 years or longer, first-time buyers are no longer exposed to potential rate rises, meaning they do not need to pass a stress test to check they can afford the mortgage if interest rates rise. Other affordability criteria remain in place to make sure borrowers and lenders are still protected, but there is altogether more certainty for each party.

What’s great about these mortgages, they keep deposit requirements for first-time buyers as low as 5%, meaning those wanting to buy don’t need to spend decades saving and can instead step onto the ladder sooner. These mortgages could also open the door to buyers in more expensive areas, as a bigger loan size could be accessed than through other products. And, because there is no need to juggle multiple different loans, or select a property that meets the Government’s criteria, these mortgages could provide a much more straightforward route into homeownership for many where the buyer has more market choice.

If a fixed for life mortgage sounds like something that could help you then sign-up to the Perenna waitlist to be the first to hear about when these products become available.

Correct at time of publishing.