Tembo, a London based digital-mortgage platform which helps customers struggling with affordability criteria, has raised £5 million from Lone Ventures and Starling Bank backer Harold McPike.
Existing investors Aviva Ventures and Ascension Ventures both also invested again as part of the round. Aviva joined with Nationwide Building Society in a £2.5 million round for Tembo in August 2021, just two months after its live launch.
The investment will be used to continue to develop Tembo’s proprietary, decisioning and affordability technology, providing users with an instant comparison of affordability and costs for all the available options and buying schemes to help them buy or remortgage their home. This includes innovative family mortgages which leverage either income, property equity or savings to help first-time buyers get on the property ladder, as well as a growing number of specialist part buy, part rent and shared ownership schemes for those without family or friend support.
Tembo will also invest in growing its strategic partnerships with a range of wealth managers, house builders and lenders including Barratt Homes and Aviva.
Richard Dana, CEO and founder of Tembo says: “Owning a home is still a dream and aspiration for so many people but the existing market is not set up to help those who are unable to save a deposit or meet affordability on a standard mortgage. Over 80% of the customers that we have helped to date have been turned down by a lender or mortgage broker before they reach us. Many customers who would otherwise be trapped in a rental cycle without the support of our products end up paying less money each month for their mortgage than they do for their rent.”