Tembo – a London based digital-mortgage platform which provides a one stop shop for the available mortgage schemes to help customers struggling with affordability, has today announced that it has secured £5 million of investment.
Tembo welcomed two new investors as part of this round. Love Ventures, a specialist FinTech, PropTech and ConsumerTech investment fund, and the McPike Family Office who have made a number of successful UK investments including Starling Bank and Acre Platforms. Existing investors Aviva Ventures and Ascension Ventures both also invested again into Tembo as part of the round.
Tembo has had a very strong start to 2023 helping homebuyers who are struggling with affordability. The investment will be used primarily to continue to develop Tembo’s powerful 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 boost affordability, 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 trusted wealth managers, house builders and lenders including Barratt Homes and Aviva.
Commenting on the investment Richard Dana, CEO and founder of Tembo said: “We’re delighted to have the ongoing support of such incredible investors – who bring with them expertise and insight into property, mortgages and intergenerational wealth. This investment gives us the resources to continue to help thousands more customers fulfil their dreams over the coming years.”
Evidence suggests that over the medium to long term, homeowners are £185k better off than those who rent. But rising house prices, stagnating salaries and stricter lending rules have made home ownership unachievable for many.
“The market for the unaffordables is continuing to grow, as large swathes of the population have been locked out of homeownership.” Dana continues, “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.”