Perenna cuts residential and RIO rates by up to 0.59%

Reductions include the lender's flagship 40-year fixed rate product.

Related topics:  Later Life,  Mortgages
Rozi Jones | Editor, Barcadia Media Limited
11th July 2024
house price coin down
"The Perenna mortgage is attractive to over 50s, having no maximum age and acting as a great bridge between a traditional mortgage and equity release."
- John Davison, head of product, proposition, and distribution at Perenna

Perenna has announced rate cuts across its residential purchase and retirement interest-only products.

The cuts specifically cover all standard residential purchase products, including the lender's flagship 40-year fixed rate product and fixed for life retirement interest-only (RIO) product.

The 40-year fixed rate product at 95% LTV has been reduced by 0.34% to 6.61% with a £1,999 fee and only a five-year early repayment charge.

Perenna’s RIO remortgage products now start at 5.88% for a 60% LTV loan with a £1,999 fee.

The Perenna mortgage doesn’t have any maximum age limits, so brokers can offer their clients a range of options, from a RIO to a capital and interest repayment mortgage, spreading their mortgage over a longer time frame. This feature is helpful for clients coming to the end of an interest-only deal or those already in retirement wanting to release equity through a conventional mortgage and looking for lower monthly payments. For example, on a £100,000 RIO mortgage at 6.14%, the monthly payment would be £511.67.

Perenna recently joined the lending platform Air and the Quilter network.

John Davison, head of product, proposition, and distribution at Perenna, commented: “With Perenna, age is no more than a number. The Perenna mortgage is attractive to over 50s, having no maximum age and acting as a great bridge between a traditional mortgage and equity release. For customers who may still have plans to sell in the future but can’t access a traditional mortgage due to their age or term restrictions, Perenna offers an innovative solution.

“We continue to identify ways to offer increased value to our brokers and their clients, and we will continue to do so with the Perenna mortgage.”

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