Perenna has released a standard variable rate (SVR) comparison tool for brokers to help evaluate borrowing amounts.
The SVR comparison tool and calculator, which can be found on the lender’s intermediary page, allows brokers to calculate the approximate loan size that Perenna can offer, subject to criteria, and compare against traditional SVR stressed mortgage.
Due to the longer terms offered by Perenna, which range from 10 to 40 years, it does not need to stress test deals unlike shorter-term fixed rates.
Consequently, the lender can offer higher loan amounts, boosting the borrowing power of prospective homeowners.
For example, using the SVR comparison tool for a borrower with a budget of £1,500 a month searching for a 90% loan to value (LTV) on a 30-year term shows that they could access £44,441 more from Perenna than “traditional lenders”.
Perenna would be able to lend £231,031, compared to the £186,590 from other lenders,
Colin Bell, co-founder and chief operating officer at Perenna, said: “This calculator is an important next step in our ongoing efforts to educate the industry on the impact different types of mortgage products have on affordability.
“Not only do longer-term fixed rate mortgages take the burden of interest rate risk away from the consumer, they also give an affordability boost which could make the difference between a one or two-bed, a leasehold or freehold, or getting onto the first rung of the housing ladder.
“It’s there to help brokers see clearly the benefits of long-term fixed rate mortgages. And the product comes with short early repayment charges (ERC) of only five years so clients have flexibility too.”
Perenna recently lowered its remortgage rates by up to 0.38%, and purchase rates by around 0.27%, and added a 10-year fixed rate deal.
The company also added a retrofit discount feature earlier this year to encourage homeowners to upgrade their properties.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
