Long-term fixed rate mortgages – busting the myths

In the UK, there aren’t many longer-term fixed rates out there. We’re changing that with the Perenna mortgage.

Like with anything new, we know it can take time to feel comfortable with a new offering. We appreciate that not everyone fully understands how long-term fixed rates can benefit them. So, we think it’s time to shine a light on some of the myths we’ve come across and show how Perenna’s innovative product can address these for your customers.  Here are just some of the comments we’ve come across…

Myth: They’re not flexible

We say:

Typically, longer term fixed rates offered in the UK have not given borrowers the flexibility they may want. Ten-year fixed rates may come with long early repayment charges which can restrict borrowers.

However, a Perenna mortgage is different. Our product combines long term stability with flexibility. Your customer will know exactly what they must pay each month for the whole mortgage term. No teaser rates, no rising payments, no shocks.

Plus, our mortgages are designed to fit around their life. That’s why they can take their mortgage with them when they move home or change mortgage to another lender or product without charge, after 5 years.

Myth: Not many people are interested

We say:

Thousands of people on our waitlist have shown that they are interested. Plus, millions of people across US and Europe already benefit from products like this. So, why shouldn’t these mortgages work in the UK? Our mortgages have been designed to help:

• first-time buyers looking to borrow a little bit more
• homeowners seeking stability when remortgaging
• later life borrowers wanting to release equity from their property

Myth: They’re expensive

We say:

You can’t compare apples and oranges.

Whilst a Perenna mortgage may have a higher rate than some other ‘teaser’ rates on offer, you need to think about how they may compare longer term. For example, if your customer is  thinking about fixing their rate over a short term, they’ll need to consider what happens when that deal comes to an end. Will they be able to afford a new mortgage if rates rise or their circumstances change? We want to remove this risk.

We don’t think homeowners should have to worry about rates changing or being denied access to mortgage products in the future. That’s where a Perenna mortgage comes in. By fixing their rate for the full mortgage term, they’ll know exactly what they must pay each month for the whole mortgage. Can you put a price on peace of mind?

Myth: Rates will come down so no need to fix for longer

We say:

Everyone loves a good deal. But is it wise to hazard a guess on what could be your biggest financial decision? Instead of trying to predict the future, your customer will know exactly what they’ll pay each month with a Perenna mortgage. This puts them back in control of their finances so that they can plan for their future.

Yes, rates could come down, or their circumstances could change. And that’s why our product comes with flexibility as standard. If they want to change, that’s no problem. They can do so without charge after 5 years.

Find out more about our mortgages?

Want to find out if Perenna could help your customers? Why not use our calculator to find out how much they could borrow? Or get in touch with the team to find out more.

Correct at time of publishing.