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 the direction of the issuance of long-dated coated bonds.
Perenna would be the UK’s first coated bond financial institution. Unlike conventional excessive road 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 reminiscent of Denmark.
Through the issuance of coated bonds, Perenna will join actual cash buyers with the UK mortgage market.
Perenna acquired its full financial institution licence in September 2023 and launched to the broader market in January of this yr. Perenna gives long-term fastened charge mortgages, the place the speed is fastened for the entire time period, and early reimbursement prices 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 challenge 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 accomplice given their in depth expertise with long-term fastened charge mortgages throughout Europe, and the power they’ve supplied will assist speed up our origination and broaden our funding capabilities additional.”
