Monzo co-founder Paul Rippon has led a £275,000 angel round for OnLadder, a startup lender aiming to help Brits get on the property ladder.
Currently going through the FCA authorisation process, OnLadder has set itself the target of helping first-time buyers onto the property ladder.
The startup says it will fund buyers' deposits and structure a repayment plan that enables them to focus on paying off the mortgage. The firm will lend the deposit as a percentage of the property's value and then the customer will repay a slightly higher percentage of the value at the time of repayment: for example, a 15% OnLadder loan will require a 20% repayment.
"Whether you sell, remortgage, or simply want to pay us back early, tell us what's best for you and we'll design a repayment plan that best suits you," claims the website.
OnLadder has recently added former director of mortgages at UK Finance, Jackie Bennett, to its board as it builds out its initial operations and industry partnerships ahead of launch.
Say founders Cam Orcutt and Sam Hatley: "For the better part of two decades first time homebuyers have been given a raw deal. 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 at what is an institution in the UK, thwarted from properly beginning to build their financial future and stepping up onto the property ladder.
"OnLadder wants to be a part of the solution, providing a more flexible form of deposit financing that will enable first time buyers to achieve their goal of stepping onto the ladder quickly and responsibly."