The fundraising was led by strategic investor Silverstripe Investment Management, as well as other existing backers, bringing the total amount raised by the bank to almost £74m since 2020.    

The firm says the cash will help roll out its mix of 20-to-30-year fixed-rate products.  

It has a waiting list of over 5,000 potential borrowers, adding that “applicants will be invited to apply over the coming weeks with the business opening up to the wider public later this year”.  

The bank’s funding model relies on the issuance of covered bonds that allows institutional investors seeking long-term stable income access to the UK mortgage market, rather than making loans based on retail deposits. This home loan model is more common in European markets.   

It adds: “Through offering long-term fixed-rate mortgages the business is able to tackle a range of structural homeownership challenges, from first-time buyer affordability, to mitigating the impact of interest rate volatility and increasing choice and flexibility in later life.”  

Perenna chief executive and co-founder Arjan Verbeek says: “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.  

“With over £3tn of investor monies having no efficient access to the UK mortgage market, our covered bond platform will unlock this, enabling them to generate sustainable risk-adjusted returns whilst also delivering better outcomes for homeowners across the country.”  

Earlier this month, the firm was awarded its UK banking licence from the Prudential Regulation Authority and Financial Conduct Authority.  

It also hired two senior account managers — Tim Sorrell, who will cover the South, and Deborah Reeves, covering the North as the firm prepares for launch.