Its Farnborough office has been closed and all staff have been made redundant.
Around 20 people were employed by the firm.
Portillion was originally launched by former GMAC-RFC boss Stephen Knight (pictured) under the name Checkmate Mortgages in 2007 and rebranded to Portillion in February 2010, aiming to launch in 2011 with mortgages and savings.
In February last year, chairman Stephen Knight was forced to leave his role as CEO due to serious illness.
In March this year, Portillion confirmed it had withdrawn its application to the FSA for a banking licence. It has been almost a year since the firm first applied to the FSA to become a mortgage lender in May 2011.