Reduced Mortgage Rates and 10-Year Fix Announced by Perenna

Perenna, the specialist long-term fixed-rate lender, has announced a shake-up of its mortgage range, including the introduction of a 10-year fixed-rate deal. This will sit alongside its existing range of 15-year fixed-rate mortgages.

What are the new rates?

The lender has cut rates across its range, with some of the biggest savings to be made by remortgaging borrowers.

Here’s a breakdown of the new rates:

Remortgages: Rates now start from 5.71% at 60% loan-to-value (LTV). This represents a cut of up to 0.38%.
Home purchases: Rates now start from 5.15% at 60% LTV. This represents a cut of up to 0.27%.
Retirement interest-only (RIO) mortgages: Rates have been cut by up to 0.5% and now start at 5.79% at 60% LTV.

All products come with a fee of £1,999.

Why is Perenna making these changes?

Colin Bell, co-founder and chief operating officer at Perenna, said: “Perenna continues to be one of the few lenders in the UK to offer long-term fixed-rate products, and we are constantly looking to expand and strengthen our offering to provide greater choice and flexibility for our customers.”

“With the latest reduction to our minimum term and rates, we aim to help as many borrowers as possible, whether they be first, second or later-life buyers.”

What does this mean for borrowers?

The introduction of 10-year fixed-rate mortgages gives borrowers even more choice when it comes to fixing their monthly repayments.

10-year fixed rate mortgages offer a number of advantages:

Peace of mind: Knowing exactly what your monthly mortgage payments will be for the next decade can provide valuable peace of mind, especially in times of economic uncertainty.
Protection from rising interest rates: With a fixed-rate mortgage, your interest rate will not change for the duration of the fixed-rate term, even if interest rates rise more generally.
Easier budgeting: Fixed monthly payments make it easier to budget and plan your finances.

Earlier this month, Perenna also launched a range of long-term fixed-rate mortgages that offer a discount to borrowers who make energy efficiency improvements to their homes.