Perenna has secured a £200m warehouse facility from ABN AMRO Bank.
The facility will allow Perenna to fund its rising mortgage pipeline and work in direction of the issuance of long-dated coated bonds.
Perenna would be the UK’s first coated bond financial institution. Unlike conventional excessive avenue banks, Perenna doesn’t depend on buyer deposits. Rather, mortgage lending is funded by the issuance of coated bonds, as is the case for mortgage banks throughout continental Europe equivalent to Denmark.
Through the issuance of coated bonds, Perenna will join actual cash buyers with the UK mortgage market.
Perenna obtained its full financial institution licence in September 2023 and launched to the broader market in January of this yr. Perenna gives long-term mounted fee mortgages, the place the speed is mounted for the entire time period, and early reimbursement costs are now not than 5 years; providing capital & reimbursement, curiosity solely, and retirement curiosity solely merchandise, with phrases up to 40 years.
Perenna plans to difficulty its first coated bond in 2024.
Perenna co-founder & chief capital officer Hamish Peacocke commented: “We’re delighted to be working with ABN AMRO Bank; they’re an ideal associate given their intensive expertise with long-term mounted fee mortgages throughout Europe, and the ability they’ve offered will assist speed up our origination and develop our funding capabilities additional.”
