Perenna has launched its first long-term fixed-rate home loan to new customers and first-time buyers as part of its exclusive partnership with L&C Mortgages.  

It will lend up to 95% loan to value for fixed-rate terms up to 40 years, at up to six times a borrower’s income, subject to criteria.  

The lender adds: “A longer fixed rate term allows borrowers a higher affordability boost compared to those on a short-term fixed rate mortgage.   

“This is because of the way current mortgage products are designed which places all the market risk on borrowers.   

“Once this is removed, through fixing the rate for the entire term, FTBs could borrow more.”  

Perenna chief executive and co-founder Arjan Verbeek adds: “As we remove market risk from borrowers, customers can borrow what they actually can afford, which in some cases can be on average up to 30% higher than the high street lenders.”   

In September, Perenna secured £42.6m ($52m) of cash from investors as geared up for launch.    

In the same month, it was also awarded its UK banking licence from the Prudential Regulation Authority and Financial Conduct Authority.