New lender Perenna has secured a banking licence to enable it to start offering mortgages early next year.

The lender plans to offer whole of term fixed rates, meaning you can lock into a rate for your entire mortgage term, up to 30 years.

Perenna said there are benefits to borrowers to fixing for the long term. For example:

Accessible – You can potentially borrow more based on what you can afford. Due to the length of the term customers are not required to be assessed under higher interest rates which in turn limits borrowing amounts. This could boost your buying power.

Adaptable – The lender’s early repayment charge is short and the product is portable so you aren’t tied in for the whole term if you want to move home for example. The lender says the product flexes to you, not the other way around.

Absolute – Payments are fixed for the whole mortgage term, giving you protection from wider interest rate movements.

Under its flexible 30-year fixed rate product, the lender said it will be offering mortgages up to 95% of the property’s value. It plans to help more first-time buyers onto the property ladder as well as providing mortgages to people in retirement and to everyone who wants long-term payment security.

Perenna will join a handful of lenders already offering super-long-term fixed rates, including Kensington Mortgages, Landbay and Habito.