Another $52m (£42.7m) in funding has been raised for new British lender Perenna.
The latest funding was led by Perenna’s strategic investor, Silverstripe Investment Management, among others, and is only part of its $90m grand funding total since 2020.
The bank is one of a kind to the UK market given that it does not rely on retail deposits. Instead, it is “powered” by the issuance of covered bonds unlocking access to the UK mortgage market for investors seeking long-term income stability.
The fundraising proceeds will help launch the Perenna Mortgage, which is meant to offer 20 to 30-year fixed-rate products to a waiting list of more than 5,000 customers.
“This successful fundraise, set against the backdrop of a challenging fundraising market is a clear testament to the strength of our unique approach and the significant opportunity to reimagine the structure of the UK mortgage market,” Arjan Verbeek, co-founder and chief executive officer of Perenna, said.
Hamish Peacocke, chief commercial officer and company co-founder, said the UK is a “clear outlier” in comparison to “advanced economies” like Denmark or the US.
“The market is in dire need of reform at a time when homeowners are battling a range of challenges, whether that be first time buyer affordability, those remortgaging in a higher rate environment or those looking for greater choice and flexibility in later life,” he added.