Portillion sets launch date of January 1

28 June 2011 | By Natalie Thomas

Mortgage Strategy revealed in May that the would-be lender has applied to the Financial Services Authority for its authorisation after securing capital from an unnamed investor.

But its accounts for the year ended December 31 reveal that SBI Funding will fund its working capital requirements through to an assumed launch of January 1 2012 and will also provide the necessary tier 1 capital at launch.

It recieved £6.5m on April 8 and £51.7m on April 28 2011.

It has applied to the FSA to become a mortgage lender and retail deposit taker and says it believes there is a gap in the market for a new internet based savings proposition.

The accounts show Portillion Holdings Limited made a loss for the year of £5.1m.

Gerald Gregory was appointed chairman of Portillion in February after Stephen Knight stepped down after being diagnosed with a brain tumour.

In his chairman’s statement in the accounts, Gregory says: “The board remains convinced that an opportunity exists in today’s market for a new intermediary focussed mortgage lender and retail deposit taker.

“We are delighted that the SBI Group share this view and were willing to invest in the company to enable Portillion to come to market.

“We are also pleased to have the continuing support of our investors, including RIT Capital Partners plc and philanthropic interest associated with Lord Rothschild.”

Gregory says Portillion will compete in the mortgage market on product design, speed to market and excellence of service, with a web based application system.

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