Aviva and Nationwide have joined a £2.5 million funding round for Tembo Money, a mortgage broker focussed on helping first-time buyers to get on the property.

The capital funding round was 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.

The mortgage brokering startup, which launched in June of this year, is aiming to address the ‘poverty premium’ and help prospective homeowners buy their first property sooner by allowing them to unlock money from the existing property of a friend or family member, using that capital to top up the buyer’s deposit or create one from scratch.

Its Income Boost feature also works 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 says its 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."

Tembo co-founder and chief executive, Richard Dana, said: “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.”

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