Perenna applies to become first pure UK covered bond bank

PA-UK houses
By Bill Thornhill
30 Oct 2020

Perenna has applied to become the first UK covered bond bank and plans to issue 30 year fixed rate mortgages next year, using the Danish covered bond system that limits mismatches between the terms of the mortgages and the bonds that fund them.

“Three weeks ago we put in an application to become the first covered bond bank in the UK, and we plan to start originating mortgages from summer 2021,” said Perenna’s chief executive, Arjan Verbeek, on Thursday.

Danish mortgage banks operate under a balance principle, which means they ...

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