Tembo Money raises £2.5m in round backed by Aviva and Nationwide

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.”

    Share Story:

Recent Stories

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.