A new lender has been granted a licence by UK financial regulators to offer mortgages with fixed rates of up to 50 years in a move aimed at helping borrowers manage soaring inflation.

Perenna, a UK-based specialist lender, is initially planning to provide home loans that lock in rates for 30 years.

It will then roll out products with even longer terms.

Its approval comes as the Bank of England raises interest rates in an attempt to tackle rapid inflation, which has reached a 40-year high of 9.4 per cent in Britain.

Banks typically provide mortgages with fixed rates of up to 10 years.

The most popular products last between two and five years, according to Ray Boulger, senior manager at broker John Charcol.

Read more on mortgages

We sold our house and bought a CARAVAN park to live mortgage free

I’m a mortgage expert – here are five ways to reduce your repayments

Perenna could offer rates of 4 to 4.5 per cent on the 30 to 50-year loans.

This would be affected by gilt yields at the time of launch.

House prices in the UK reached a record high last month.

Data from property site Rightmove on Monday showed the average value had dipped 1.3 per cent in August to £365,173.

Most read in The Sun

‘Predator’ Mendy 'told victim "don't move" as he pinned arms back & raped her'

Millions of energy customers to get £400 payment directly in to bank account

Love Island star gets new £70k BMW – despite being booted out of villa on day 2

Haaland shows off sunburn after flying to Marbella following Man City win

Source: Read Full Article