PRA & FCA Authorise Perenna to Accept Retail Deposits as Lender Boosts Funding Strategy

WHY THIS MATTERS:This landmark regulatory milestone is a significant indicator of the ongoing evolution in specialist lending and UK long-term mortgage finance. For a non-deposit-taking institution to secure authorization for retail deposits—a historically low-cost, stable source of capital—it fundamentally alters their competitive posture against established high-street banks. The ability to vertically integrate funding allows a focused challenger like Perenna to dramatically lower its cost of funds, directly supporting the scaling of its extended fixed-rate products. In a market where fluctuating interest rates create acute affordability challenges, this move stabilizes the supply side of specialist housing finance. It signals a critical trend where innovative lenders are moving beyond wholesale markets to build resilient, full-stack financial architectures, ultimately pushing the entire sector toward greater product stability and consumer certainty

Perenna, the UK’s first long-term fixed-rate mortgage provider, today announces that it has received authorisation from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to accept retail deposits.

The approval comes as the lender expands its mortgage proposition to include a range of 5 to 15-year fixed-rate products and seeks to further diversify its funding strategy.

The new regulatory permission represents an important milestone for Perenna, enabling it to access additional sources of funding alongside its existing £200m warehouse facility with ABN AMRO, which currently supports its long-term fixed rate lending.

Launch of savings proposition with Raisin

Perenna has partnered with Raisin, the world’s leading savings and investment platform, to launch its retail savings proposition.

The partnership enables Perenna to offer fixed-term savings accounts with maturities from six months to five years, alongside 95-day notice accounts, to Raisin’s extensive customer base.

The move complements Perenna’s existing funding arrangements and supports the continued growth of its 5 to 15-year mortgage products, which were launched at the end of 2025 in response to rising consumer and broker demand and has already seen strong early uptake.

The strengthened funding model positions Perenna to scale its expanded product offering and play a leading role in reshaping long-term mortgage finance in the UK.

Colin Bell, Chief Operating Officer at Perenna, said: “Gaining authorisation for retail deposits is a significant moment for Perenna in our growth and value story, and will enable our continued innovation in the mortgage market. As our products become more diversified in response to market demand, so too must our funding sources.

“Launching a savings proposition is the natural next step for Perenna, and securing regulatory approval to do so is a testament to the quality of the controls, processes and people we have in place within the business.

“We’re committed to providing innovative products to the market and creating a nation of happy homeowners. Working with Raisin, we can fund access to a broader range mortgage solutions for homeowners, giving borrowers greater financial certainty and helping them navigate the UK’s affordability challenge, through funding from savers.”

FF NEWS TAKE: This announcement decisively moves the needle by proving that a modern, scaled funding model can successfully challenge the traditional banking oligopoly for capital. The immediate focus should shift to the execution of the Raisin partnership: specifically, how quickly and cost-effectively Perenna can attract a substantial volume of new retail money. If they execute this savings launch effectively, expect other challenger lenders to follow suit, further blurring the lines between specialty providers and chartered banks in the quest for capital advantage.