Revolutionizing Mortgages: Long-Term Stability with Arjan Verbeek

In this episode of the Property Funder podcast, host Michael Dean interviews Arjan Verbeek, the founder and CEO of Perenna Bank. They explore the innovative business model of Perenna Bank, which offers long-term fixed-rate mortgages funded by specialist bonds instead of deposits. The discussion covers the unique challenges and benefits of this model, the UK housing market's failures, and Perenna's journey to becoming a bank. Verbeek also shares insights into their mortgage products, targeting first-time buyers and retirees, and the broader economic and regulatory implications.

Highlights:

Perenna Bank's Unique Model

• Verbeek explains that Perenna Bank does not use deposits to fund loans but instead issues specialist bonds to insurance companies, pension funds, and asset managers. This approach aims to provide stability in the housing market by offering long-term fixed-rate mortgages, avoiding the risks associated with short-term funding.

Challenges in the UK Housing Market

• Verbeek identifies the primary issue in the UK housing market as the short-term nature of mortgage funding, contrasting with the long-term commitment of homeownership.

Mortgage Products for First-Time Buyers and Retirees

• Verbeek explains how Perenna's long-term fixed-rate mortgages benefit first-time buyers by offering fixed payments, allowing them to borrow more and avoid interest rate fluctuations. He also introduces Retirement Interest-Only (RIO) mortgages, designed to help retirees with interest-only loans they cannot repay, allowing them to stay in their homes without the pressure of selling or downsizing.

Personal Insights and Future Outlook

• Verbeek shares personal anecdotes about his passion for football, the challenges of balancing work and family, and his reflections on the political landscape and its impact on the housing market. He expresses hope for Perenna's future and the potential positive impact of long-term fixed-rate mortgages on the UK economy.

https://perenna.com/

www.avamorecapital.com