London FinTech Perenna has completed its latest funding round, raising £7.3 million ($10 million) as part of its plan to obtain a banking licence and bring its fixed-for-life mortgages to the UK housing market this summer.

The latest investment in Perenna has been raised from a group of investors including former Deutsche Bank structured product syndicate head Kevin Flaherty, Capdesk founder Casper Arboll and Star Capital managing partner Tony Mallin, among others.

Perenna is building a mortgage lender which will use long-term covered bonds to finance its products.

It will issue 30-year fixed-rate mortgages at “highly competitive rates” while giving customers the flexibility to port their mortgage should they want to move, and levying early repayment charges that only cover the first five years of the product.

Perenna’s products will be available to borrowers ranging from first-time buyers - who can take out a mortgage with as little as a 5 per cent deposit like the old days - to those who want to move or take out a mortgage in later life.

The company says it is “investing heavily” in building its proposition around technology to “provide a better customer experience to borrowers”.

Arjan Verbeek, CEO and co-founder of Perenna, said: “For too long real and meaningful innovation in the UK mortgage market has been limited, leaving Britain with a sector that has poor product offerings for customers.

He added: "This latest investment puts us on target to launch our innovative range of long-term fixed-rate products, allowing consumers to borrow what they can actually afford.”

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