Under the partnership, set to launch later this year, Mortgage Hub will power Perenna’s mortgage offering and allow it to produce decision in principles (DiPs) within 20 seconds.

It comes as Perenna prepares to launch a range of flexible 30-year long-term fixed rate mortgages in the UK, providing consumers with the option to lock in their mortgage interest rate for several decades.

Perenna aims to create a disruption in the market, whilst also giving borrowers certainty on their mortgage payments and helping them avoid having to repeatedly refinance to remain on a competitive mortgage deal.

The integration with the Mortgage Hub means Perenna will also be able to provide prospective borrowers with a decision-in-principle within seconds, ushering in the next phase in the mortgage application journey.

Target Group, a business processing and software provider, launched Mortgage Hub at the beginning of the year. It uses Open Banking and API technology to make the mortgage offer process far more efficient, by eliminating the need for repetitive data entry.

Its approach means borrowers can benefit from a decision-in-principle in just seconds. The software launched earlier this year and has the aim of providing agility and increasing accuracy to help improve the user experience.

Stuart Anderson, chief commercial officer, at Target Group, said: “Moving house is a priority for many following the pandemic, but for most, the mortgage application process is painful, with the requirement to provide the same information multiple times. Slow decisions are dogged by legacy technology – it’s time that changed.

“Our partnership with Perenna will transform the market for the better, providing speed, flexibility and certainty to both intermediaries and consumers – making the process not only more efficient, but more enjoyable too.”

Colin Bell, chief operating officer at Perenna added: “Perenna is bringing flexible long-term fixed rate mortgage to the UK to help create a nation of happy homeowners.

“Our mortgages offer borrowers better terms than short-term alternatives, which leave them exposed to sudden repayment increases and high refinance costs. Our partnership with the Mortgage Hub marks another exciting landmark in our journey to market and will see us providing customers with near-instant decisions about their borrowing options.”