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Aviva and Nationwide join £2.5 million round in mortgage broker Tembo

Aviva and Nationwide join £2.5 million round in mortgage broker Tembo

Tembo Money, a mortgage broker for first-time buyers, has raised £2.5 million, with backing from Aviva and Nationwide.

The capital, led by investors including Aviva and Fair by Design - the venture fund managed by Ascension Ventures which in turn is backed by Nationwide, Big Society Capital and Joseph Rowntree - will be used to drive the expansion of Tembo’s offering, which aims to address the ‘poverty premium’ and help prospective homeowners buy their first property sooner.

Launched in June, Tembo's products enable first-time buyers to lean on loved ones to help them climb onto the property ladder without requiring their families to have a cash lump sum.

Deposit Boosts work by allowing a willing family member to unlock money from their existing property, using that capital to top up the first-time buyer’s deposit or create one from scratch. Income Boosts work by allowing a family member to allocate some of their income to the homebuyer’s mortgage application in order to increase their borrowing potential.

Tembo co-founder and CEO, Richard Dana, comments: “The average first-time buyer is confronted by a number of significant obstacles on their route to homeownership, and for many these were thought of as insurmountable. We’re on a mission to change this mindset and help turn the tide on the generational wealth gap, by helping families work together to give first-time buyers a fast, affordable way to increase their deposit.”

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