The broker, which launched in June, offers a whole-of-market service with a focus on mortgages designed to let first-time buyers (FTBs) lean on friends or family to support a purchase.
The firm is also an appointed representative of Primis Mortgage Network.
The funding was provided by Aviva, and venture fund Fair by Design, which is backed by Ascension Ventures – whose own backers include Nationwide, Big Society Capital and Joseph Rowntree.
Richard Dana, chief executive and co-founder at Tembo Money (pictured), said the new broking firm was “focused on finding ethical, safe and flexible ways to rebalance the property wealth gap between generations.”
The funds raised would be used to build an online technology platform with an initial fact find that takes in data about potential support from family or friends. A plan is then created to help users reach their goal.
“If they can afford a mainstream product the plan generated will show that. If they’re a bit short, there will be other options,” Dana said.
He added that while 15 to 20 lenders offered joint borrower sole proprietor (JBSP) or retirement interest only (RIO) products with the aim to aid affordability for FTBs, they tended to be smaller operations with limited marketing budgets.
“We want to explain these products and raise awareness,” Dana said.
The funds will be used to develop the firm’s technology and to grow Tembo Money’s team.
“We’re incredibly happy that major players in finance and technology like Aviva and Fair by Design are joining us on our journey,” Dana said.
Dana’s professional history includes a spell in restructuring at EY, a role as co-founder of startup accelerator Founders Factory, and time running boutique travel firm Doris & Dicky.
Tembo Money’s offering includes the Deposit Boost plan, where family or friends can unlock value from their own property by way of a RIO, to top up a first-time buyer’s deposit or create one from scratch.
Additionally, its Income Boost proposition, based around JBSP products, lets a family member allocate some of their own income to the buyer’s mortgage application to increase borrowing potential.
