Tembo raises £2.5 million to help tackle the ‘poverty premium’ and get first-time buyers onto the property ladder
- Tembo’s backers include Aviva, Nationwide and Ascension Ventures
5 August 2021 – Tembo – a London based FinTech on a mission to transform consumer lending through the power of family – has today announced that it has closed a £2.5 million funding round. The news follows Tembo’s official launch in June 2021.
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 – is helping to optimise Tembo’s technology and drive the expansion of Tembo’s offering as it continues on its mission to address the ‘poverty premium’ and help millions of prospective homeowners buy their first property sooner.
Speaking on the news, Tembo Co-Founder and CEO, Richard Dana, remarked:
“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. This funding will allow us to do that, and we’re incredibly happy that major players in finance and technology like Aviva and Fair by Design are joining us on this journey.”
Tembo’s product offering comprises a range of specialist mortgages from leading lenders in the UK which allow 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. For more information, visit https://www.tembomoney.com/.
Tembo is a London based FinTech on a mission to transform consumer lending through the power of family. Starting with homeownership, it arranges and advises on a range of innovative family and later life mortgages which help first-time buyers get on the ladder faster and for less. Over 70% of its users to date wouldn’t have been able to buy without these products and on average they have saved £14,000 in interest charges. The brainchild of finance and technology expert Richard Dana, Tembo is backed by some of the UK’s leading financial brands including Aviva and Nationwide.