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 are limited.   

You may have even read stories about people who aren’t able to shop around or get a mortgage at all, simply due to their age.  At Perenna, we don’t think that’s right. We want to give people more options. So, we’re starting a mortgage revolution. Here’s how… 

Age is just a number 

We want to help homeowners make the most of their retirement. And for us, age is just a number. That’s why we don’t apply maximum 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 borrowers who are looking for options in later life.  

Unlock the equity in your home 

Free up money to enjoy a financially responsible retirement while staying in the home you love. 

With a Perenna mortgage, you can use your home’s value to gain financial freedom and shape your dream retirement. 

Taking back your borrowing power 

Forget traditional restrictions; our approach lets you secure a mortgage that can suit your needs, no matter your age! 

Predictable payments 

With Perenna, you will never have to worry about your payments going up. 

If you want to know what you’ll pay each month, long-term fixed rate mortgages could be a great option. We allow you to fix your rate for up to 40 years, meaning you can plan your future with confidence and financial peace of mind. 

Why not use our mortgage calculator to get an idea of how much we could lend to you?  

Flexibility as standard 

We get it. Fixing your rate for up to 40 years is a long time. You don’t know how your life will look in that time. And that’s why we’ve made sure our mortgage product comes with flexibility as standard. 

We want to make sure our mortgage can fit around your life. If you decide to move home, you can take your mortgage with you, no problem. And if rates come down and you’d like to change your deal, or make unlimited overpayments, that’s absolutely fine. You can do so without charge after five years. 

Why Perenna?  

• No age limits, more options in later life 
• Monthly payments that don’t change 
• Short early repayment charge for flexibility 

At Perenna, our goal is to help you lead a secure and fulfilling life in your golden years. 

Join the Mortgage Revolution for predictable payments,  flexibility, and a commitment to your financial well-being. 

Your home is more than a place; it could be the foundation for an independent later life. Take charge of your homeownership journey and step into a future where every day truly belongs to you. 

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

Correct at time of publishing.

Perenna is thrilled to announce that we have been crowned the Banking Innovation Newcomer in the Finder’s Banking Innovation Awards 2023. 

We are committed to pushing the boundaries of innovation in banking, and this award confirms our dedication to transforming the mortgage industry. 

As we work hard to build a nation of happy homeowners, we are delighted to share this exciting news.

Thank you for your continued support and for helping us lead the way in innovation in finance. 

Correct at time of publishing.

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.

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.

More than 700,000 fixed-rate mortgages are set to mature in 2021 and the borrowers behind these mortgages will soon face the task of searching for a new, competitive deal to avoid switching onto their lender’s Standard Variable Rate (SVR). For many, their most difficult decision will be deciding how long to fix for.

Nobody can predict whether interest rates will rise or fall in the future, which can choose from picking a two- or five-year fixed rate product akin to a guessing game. Mortgage rates might be at historically low levels, but there are no guarantees how long these favourable conditions will last. Because of this unpredictability, knowing how long to fix for – with two, three, five, or even 10-years can be a real challenge.

However, consumers picking a shorter fix today could face a much more expensive mortgage market when their fixed-rate term expires, and they seek a new deal. Even those taking out the cheapest mortgages today may find themselves paying significantly more two or five years from now if interest rates rise.

Escape the remortgage cycle

Perenna is creating an alternative that removes the guesswork around mortgage refinancing by giving borrowers complete certainty over their monthly repayments for the long-term. Perenna’s fixed for life mortgages will enable borrowers to lock in their rate for up to 30 years – far longer than even the closest alternative currently available. This new approach will allow borrowers to capitalise on the current cheap mortgage rates while removing the risk of rising repayments in the future.

There are other benefits to Perenna’s fixed-for-life mortgages. Borrowers do not need to undertake the time-consuming and potentially expensive remortgage process time and time again. Mortgage brokers can charge hundreds of pounds for their services, and banks may also charge product fees to customers switching their loan, which can cost thousands over the lifetime of a mortgage.

To add yet more stress to borrowers, remortgages can also take weeks to complete, require new valuations of the property, and create avoidable stress. This is a particular issue at present because the coronavirus crisis has caused delay-inducing disruption for mortgage lenders, estate agents and conveyancers.

Who should consider a Fixed for life mortgage?

Is a fixed-for-life mortgage right for everyone? There are reasons why borrowers of all ages could benefit from these mortgages. Older borrowers stand to gain from the certainty of knowing what their payments will be in retirement rather than potentially facing rising repayment costs in later life. Retirees with pension income linked to inflation also stand to see the cost of their mortgage decrease in relative terms as their earnings continue to rise against their repayments.

This stability is also beneficial for younger homeowners too, particularly in today’s fast-changing world. By eliminating the risk of repayments rising, Perenna’s mortgages provide more security to first-time buyers who have smaller amounts of equity in their homes. And when they move, they can take their mortgage with them if they want to – it’s fully portable.

The unique way Perenna loans are structured also means that borrowers can more effectively satisfy the strict affordability tests applied to mortgage applicants. Customers are always asked to prove if they can afford their predicted monthly repayments, but those taking out a long-term fixed-rate product from Perenna will not face the same harsh stress tests applied to customers taking out shorter-term fixed-rate loans. This means that customers don’t have to settle for a smaller than desired loan amount, putting them in a better position to afford the home they really want.

Full flexibility low lock-in

And if the idea of locking into a mortgage rate for three decades raises eyebrows, there is flexibility too. Although the mortgage interest rate is fixed for life, borrowers are still free to move to another deal if they find one that offers a more competitive interest rate. All Perenna’s mortgages are free to switch from after five years, just the same way you could a traditional mortgage plan. That’s why it’s worth considering a long-term fixed-rate mortgage from Perenna that removes the stress from homeownership and offers fair, stable repayments for years to come. So, to be the first to hear more, sign up to our waiting list via the link: Join Waitlist.

Correct at time of publishing.

Paying off your mortgage is one of the biggest financial milestones in your lifetime. Being mortgage-free is something that most of us will have been working towards since we first stepped on the ladder. For some, it might even be synonymous with the idea of having the financial freedom to enjoy the retirement we want whether that’s renovating the kitchen, building an extension or taking a once-in-a-lifetime holiday.

Working towards paying off your mortgage is certainly no bad thing, but the borrowing landscape has now changed dramatically. Having debt in later life doesn’t have to mean you can’t live the retirement you want.  In fact, a mortgage in later life could actually give you the means to live your best retirement.

New opportunities due to low interest rates

Today, interest rates are sat near record low levels and borrowing is cheaper than ever – particularly when it comes to mortgages. At the same time, house prices have risen substantially in recent decades. According to the Office for National Statistics, prices increased by 4.7% in the year to September to reach an average of £245,000. If you’re a homeowner who has spent those decades steadily paying off the mortgage, it’s likely you’ll now have much more of your wealth tied up in the property you own – and you certainly won’t be alone in that regard.

Unlocking that housing wealth in later life through a mortgage could help you to access the funds you need to enjoy the retirement you’ve always wanted. But how can you make that wealth work to your advantage?

Making your property wealth work for you

Long-term fixed-rate mortgages, which will be launched soon by Perenna, can provide a viable option, whether you’re looking to help your children onto the ladder or enjoy your best retirement. Given the low interest rates at present, this could be a cost-effective way to release equity and, because rates are fixed, you’ll know exactly what you’ll need to pay in the future.

With a long-term fix like those Perenna will soon offer, you can use the freed-up funds to achieve the lifestyle in retirement you want, or alternatively to carry out home improvements and even pay for holidays.

Long-term mortgages are not equity release plans. They do not have compounded interest rates where the debt you owe grows quickly and which could leave you with little to pass on as inheritance to your loved ones.

The Bank of Mum and Dad

What about helping your kids too? High house prices are not just an issue that affects older generations – they can also make it difficult for younger people to save enough money for a deposit to step onto the ladder. It’s not surprising then that a growing number of first-time buyers are relying on the so-called Bank of Mum and Dad to help make their own property dreams a reality. But if you have no readily-accessible cash after paying off your mortgage, this can leave your children with limited options.

Downsizing into a smaller, less expensive property is one way of releasing these funds, or you could take out an equity release mortgage. Both can be expensive though, and from the hassle of moving to equity release eating into inheritance, there are also other drawbacks. Likewise, high-interest borrowing such as credit cards can potentially undo a lifetime’s good work of paying back your mortgage debt.

A route onto the ladder too

Taking out a long-term fix could even reduce or remove the need for you to act as the Bank of Mum and Dad for your children too. One of the greatest challenges facing younger buyers today is passing strict affordability tests when it comes to getting a mortgage. Borrowers must prove they can meet repayments if interest rates were much higher, in some cases up to 7%. This has led to first-time buyers being told they cannot afford a mortgage, even if their monthly repayments would be much lower than what they are currently paying for their rent. Yet, by taking out a long-term mortgage with a fixed interest rate, your children wouldn’t have to pass the same level of stress testing, making it easier for them to achieve their dream of homeownership without having to draw on the finances you need to rely on in later life.

Correct at time of publishing.