Would-be first-time buyer lender OnLadder has closed its doors before formally opening because it was unable to raise enough cash to lend to borrowers.  

The business, set up as a broker-based deposit lender, launched a website in 2021, and aimed to provide homes for FTBs with 5% deposits. It opened a waiting list for prospective borrowers.  

But the firm now says it has scrapped its formal launch because it was unable to attract enough capital to fund the business, blaming higher inflation and interest rates.  

OnLadder founder and chief executive Cameron Orcutt says on LinkedIn: “Years of hard work got us to a point in the first half of 2023 where we had our initial partners in place, but with inflation climbing, and the base rate soaring, we stalled.   

“With capital drying up, raising the necessary equity to meet regulator requirements became prohibitive.”  

He adds: “We were stuck. We tried pivoting, but we were always brought back to the same place. Closure, though heart-wrenching, was the only option.”  

The company promised FTBs that they would be able to borrow less from mortgage lenders, which would mean they would have “lower mortgage interest payments”. It planned to fund new build homes, or older properties.  

The firm was founded by Orcutt and chief technology officer Samuel Hatley.  

However, its non-executive director is Jackie Bennett, who is the current chair of the Bank of England’s Residential Property Forum.   

Its advisors include former Vida and Together director Richard Tugwell, Monzo Bank co-founder Paul Rippon and former Conservative housing minister Mark Prisk.