By Amelia Isaacs on Thursday 14 April 2022
As housing prices rise, new lending fintech OnLadder has scored £275k in angel investment led by Monzo co-founder.
Monzo co-founder and GB Bank Chairman Paul Rippon has led an angel investing round of £275,000 for new fintech OnLadder.
As the cost-of-living crisis worsens and in the wake of rising house prices during the pandemic, the new UK fintech lender is seeking to make it easier for first-time buyers to get on the property ladder.
The company is planning to use the money, which was led by Rippon but also included mortgage industry experts, to create a “second-charge product” to supplement buyers’ deposits.
“It’s time for the stark choice of rent or buy (with a mortgage) to be joined more subtly giving more people greater financial flexibility with their home,” Rippon said.
“The OnLadder team are doing that whilst considering the interests of customers and other stakeholders in the digital age.”
On LinkedIn, Rippon shared his own struggles to save money for a deposit on his first house with his wife in 1993.
Short of the 5 per cent deposit needed, he convinced the vendor to let them rent for a few months while they saved the money.
Serving as an advisor to the fintech, he explained that this is one of many reasons OnLadder resonates with him.
OnLender’s founders, Cameron Orcutt and Samuel Hatley, shared their aim for the company to be part of the solution to help first time buyers by providing a more flexible form of deposit financing.
“For the better part of two decades, first-time homebuyers have been given a raw deal,” they said.
“They’ve been left to watch as house prices have skyrocketed, raising deposit requirements, and as more restrictive lending regulations have been instituted, limiting their ability to borrow the mortgage they need to buy a home.”
This has left first-time buyers “on the outside looking in”, unable to start building a financial future, they explained.
“This will not be easy, seemingly intractable problems never are, but it can be done and it must be done to bring about better outcomes for first time buyers,” they added.