Tembo Money get £2.5 Million funding
Tembo Money are on a mission to transform consumer lending and help first time buyers get on the property ladder.
They’ve recently secured £2.5 Million in funding to optimise their technology and expand their offering. The company, who we’ve had the pleasure of working with for some time, officially launched their main offering in June 2021 and this funding provides a boost to their efforts.
They’re trying to address the ‘poverty premium’ and help people buy houses without needing to have a large cash sum available either borrowed from family members or lenders.
Tembo’s products help prospective buyers unlock money from existing family property which can be used to top up or start a deposit for a house.
CEO and Co-Founder Richard Dana has said the firm is “focused on finding ethical, safe and flexible ways to rebalance the property wealth gap between generations.”
The investment was led by Aviva and Fair by Design, a venture fund managed by Ascension Ventures and backed by Nationwide and others.
On the recent news he 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."
Tembo’s family lending products include Deposit Boost and Income Boost.
Deposit Boost allows a willing family member to unlock money from their existing property to top up first time buyers deposit or start one from scratch.
The Income Boost increases borrowing potential by allowing family members to allocate some of their income to a prospective buyer’s mortgage application.
Tembo say that over 70% of its users wouldn’t have been able to buy without these products and have saved on interest charges too.
It’s a pleasure to work with a company that is really disrupting the market for first time buyers and removing barriers to home ownership. Have a look at their website to see some of the design work we’ve done.
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