Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Tembo Money Quickfire Round Up
Tembo offers exceptional assistance for those aiming to purchase property.
They provide innovative solutions to enhance your borrowing capacity and augment your deposit, ensuring you can climb the property ladder more easily.
With access to over 100 lenders, they are dedicated to finding the most suitable mortgage for your needs. Additionally, if you already own a property, they can assist in transitioning you to better mortgage deals.
The problem isn’t necessarily a new one: first-time buyers are finding it more than just a little challenging to get their foot onto the housing ladder. While the problem may not be new, it’s one that’s certainly growing.Â
With house prices skyrocketing, inflation rampant in 2023, and stagnant wages, buying your first home is more complicated than ever. However, Tembo Money is here with a new approach to the problem.Â
Tembo Money came into being with the aim of opening up home ownership to all. As a company, they’ve seen the struggles faced by first-time buyers, and so they’ve adopted an innovative approach to help.Â
Many of us don’t think about saving for a house deposit until our mid-late 20s and don’t go on to buy a home until mid-late 30s. Tembo is trying to buck that trend by allowing access to mortgage products earlier but with one small twist.
In this Tembo review, we’re going to take a look at just who this company is and examine what it has to offer.
Tembo Rating
- Useful Features
- User Experience
- Price / Fees
- Suitable For First Time Buyers
- Customer Feedback
- Customer Service
Is Tembo good for first-time buyers?
Tembo is an ideal choice for first-time buyers, particularly those grappling with challenges like modest deposits and limited incomes.Â
They offer innovative solutions like the Income Boost service, where friends and family can help enhance your income for mortgage purposes.Â
Additionally, their Deposit Boost option allows your loved ones to leverage their property to increase your deposit, making your dream home more attainable.
For those without this kind of support, Tembo still has a plethora of options to explore. One key service is handling the entire mortgage application process for you.Â
Even if you opt out of the additional services like Income and Deposit Boosts, Tembo guarantees the best mortgage match for you by scouring the market—reviewing options from over 100 lenders.
While Tembo stands out for its comprehensive approach, the value of a good mortgage broker cannot be overstated. The right broker can make a significant financial difference, potentially saving you hundreds each month.
You can head over to the Tembo Money website to get started here.
Tembo Mortgage Reviews - About Tembo Money
If you’ve yet to hear of Tembo Money, then that’s understandable. As a relative newcomer, this London-based company was only launched in June 2021.
With a mission of transforming how consumer lending works by tapping into the support of family members, Tembo Money raised an additional £2.5 million in funding after its launch.
Just to give a glimpse into the confidence that exists around this company, this funding was backed by big names such as Nationwide, Big Society Capital, and Joseph Rowntree.Â
As a mortgage broker, the company now has access to over 100 lenders and 20,000 mortgage products.
Is Tembo Money safe?
Before we get fully into this Tembo review, it’s worth taking a moment to look at how safe this company is and if it can be trusted.Â
After all, if you’re depending a company to arrange your mortgage, you need to be sure that all is above board.Â
Well, in fact your mind can be put at ease by the fact that it’s regulated by the Financial Conduct Authority (FCA).Â
Another big tick in the box is the fact that, in such a short space of time, it has been acknowledged with two British Bank Awards: Best Mortgage Broker 2022 and Best Newcomer 2022.Â
How Does Tembo Work?
Before we take a look at the specialist approach that Tembo Money takes to assist first-time buyers, there are also other products that are on offer.
Just like any broker out there, Tembo offers a standard mortgage option. When you apply, Tembo compares over 80 lenders to find you the best deal. The plus point here is that deposits can be as low as 5%.
Tembo also offers buy-to-let mortgages. Here there are over 50 lenders available.Â
With a minimum deposit requirement of 20%, this is relatively competitive when compared to the rest of the market.Â
If you’re looking for a remortgage and to stay in your current home, Tembo Money can help here too with mortgages available at up to 95% LTV.Â
As well as these traditional type products, what makes Tembo Money so appealing, and innovative, are the two ways that first-time buyers can get a boost. Let’s take a look:
Income boost
The income boost option is perfect for a first-time buyer who has managed to save a large enough deposit for their home. The issue that they face is that their income level isn’t at the level that a mortgage lender needs.Â
Also known as a joint borrower sole proprietor mortgage, an income boost allows you to use some of a family member’s, or friends, income so that the mortgage becomes affordable in the eyes of the slender.Â
Whoever assists with the income boost has no control over the property. However, they do have a responsibility towards making the repayments if you are struggling yourself.
Deposit boost
In this scenario, it is the case that you’re income is at a level where the mortgage company can see that repayments are affordable.Â
The problem is that you haven’t quite managed to save the 5% deposit that’s needed. When this happens, Tembo Money can assist you to tap into the funds that are locked away in a family member’s home.
Let’s say that your parents have a home and that they have sufficient equity in it, through Tembo they can unlock that money so that you can use it as your deposit.Â
The family member who has unlocked the money is responsible for the repayments as these are secured against their home. If they want you to repay, this comes to a private agreement between both parties.Â
How much does Tembo Money charge for a mortgage?
As Tembo Money acts as a broker, there are fees that it charges for its services. These vary depending upon the type of mortgage you’re looking for. Here’s a look at what you can expect to pay:Â
•  Standard Mortgage – £299
•  Income Boost – £499
•  Deposit Boost – £749
When you take a look at other brokers, these fees are pretty competitive. An average mortgage broker fee is likely to be between £350 – £400 so considering the specialist element here, these fees are still acceptable.Â
Pros
This Tembo review has shown that there is a lot to like here. The website is easy to navigate and explains in detail exactly how each product works.
The company itself reports that 70% of its users, so far, wouldn’t have been able to access a mortgage without taking advantage of the boost products that are offered.
What we also like about Tembo Money is that it’s transparent with its fees. These are clearly displayed on the homepage and there was no need to hunt around for them.
Cons
While there’s no denying that Tembo opens up the possibility of purchasing a home to many more people, this should be approached with an air of caution.
The impact of failing to make repayments will impact that friend or family member who assisted you and has the potential to cause long-term damage.Â
There’s a real need to check that any payments are affordable for the long term to ensure that you’re protecting your relationships.
What are customers saying?
One thing we really like to see is rave reviews and that’s precisely what Tembo Money has on Trustpilot with a 4.9 rating out of 5 from over 467 reviews at the time of writing.
When it comes to mortgages and money, two very touchy subjects for many people, seeing those results are awe-inspiring for a new business.
Is Tembo Legit?
Yes, Tembo is legit. It’s regulated by the FCA and has over 450 positive reviews from customers using their services.Â
When I did my research for this piece there are 100s of articles about the company and lots of reviews too.
Tembo Review - Final Thoughts
I think the concept is an excellent idea, but being someone who didn’t have the support of my parents when buying my first home, I’ve yet to experience first-hand how that might work or feel.
I totally get how parents would want to help their children, and I suppose Tembo gives them a way to do that.Â
My only caveat would be that if you’ve already paid off your mortgage (as the parent), then perhaps you’re already in a position to give your children the money.
I really like Tembo’s approach to helping get more people on the market. It’s an innovative offering, and if they can prove its worth, I think there’s a market for them.Â
They’ve already expanded their offering not only to offer parental support through loans or equity, but they also provide standard mortgages acting as a broker to help you secure one.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
