Tembo Mortgages Explained: How Family Deposit Schemes Work

What is Tembo?

Tembo is a UK digital mortgage broker run by Tembo Money Ltd. The service focuses on helping first-time buyers onto the housing ladder, with a particular emphasis on schemes that use family support, boost affordability, or allow buyers to borrow more than a traditional single-applicant mortgage calculation would typically permit.

Tembo is authorised and regulated by the Financial Conduct Authority as a mortgage intermediary. The firm reference number is listed on the FCA register at fca.org.uk. Because Tembo is a broker rather than a lender, it does not issue mortgages itself, instead arranging products from a panel of UK lenders on behalf of its clients.

The platform competes with other UK mortgage brokers including Habito, L&C Mortgages, Trussle, and traditional high-street brokers, though Tembo differentiates itself by specialising in family-assisted and income-boosted mortgage structures rather than a generic mortgage search service.

How Tembo Works

Users start by completing an online questionnaire about their finances, the type of buyer they are, and who might be able to help them with a deposit or affordability. Tembo\'s platform then identifies which schemes and lenders could be a fit for that combination of circumstances.

After the initial assessment, users are typically paired with a qualified mortgage adviser from Tembo\'s team, who takes the enquiry through to a full application, including the regulatory requirement to provide mortgage advice under FCA rules. All communication is handled through a mix of the Tembo app, video calls, email, and phone.

Where Tembo fits

The service is oriented toward buyers whose borrowing capacity or deposit is insufficient to buy the property they want through a standard mortgage. Tembo specialises in products that bring a family member, partner, or other supporter into the transaction in a structured, FCA-regulated way.

Accounts and Products Available

Tembo arranges mortgages across a range of product types. The live product list is published on Tembo\'s website. The most common categories are summarised below.

Each scheme has specific lender criteria, age limits on guarantors, and legal requirements. Users are advised during the application on what is required for each structure.

Fees and Charges

Tembo advertises its core mortgage broking service as free to the customer on standard residential applications, with the broker paid a procuration fee by the lender on completion. This is a common model across UK mortgage brokers and is required to be disclosed before the application proceeds under FCA conduct rules.

For more complex cases, including specialist schemes and certain commercial or specialist lending, Tembo may charge a separate broker fee. Any applicable fee is disclosed in the Initial Disclosure Document provided at the start of the advice process, as required by the FCA.

Separately from Tembo\'s fees, buyers will incur the usual costs of arranging a mortgage, which are paid to third parties. These include lender arrangement fees, valuation fees, conveyancing costs, and any mortgage product fees added to the loan. These are not fees charged by Tembo.

Regulatory Status and Protections

Tembo Money Ltd is authorised and regulated by the FCA as a mortgage intermediary. Its current status and firm reference number can be checked on the FCA register at register.fca.org.uk.

FCA rules require mortgage brokers to provide suitable advice, disclose fees, and treat customers fairly. Complaints that cannot be resolved directly with Tembo can be escalated to the Financial Ombudsman Service, which is free to consumers.

FSCS protection applies to FCA-authorised mortgage advice if the firm fails, with limits set by the scheme. Protection rules can change and the current details are published on fscs.org.uk.

How Tembo Compares to Alternatives

The UK has many mortgage brokers, each with a different focus. The table below outlines the broad positioning of several well-known alternatives for comparison purposes, based on how each firm advertises its service.

Common Questions

Is Tembo a lender or a broker?

Tembo is a mortgage broker, not a lender. It arranges mortgages from a panel of UK lenders and is authorised by the FCA to give mortgage advice. The actual mortgage is issued by the underlying lender, with its own terms, affordability checks, and repayment structure.

How does a Tembo Income Boost mortgage work?

Income Boost adds a family member or partner to the mortgage as a supporting applicant. Their income is counted toward lender affordability, but depending on the specific product, they may not appear on the property deed. All named applicants remain jointly liable for repayments.

Is Tembo free to use?

Tembo advertises its core service as free to the customer on standard residential mortgage applications, with the broker paid a procuration fee by the lender on completion. Specialist cases may carry a broker fee, which is disclosed up front in the Initial Disclosure Document required by FCA rules.

What is Joint Borrower Sole Proprietor?

Joint Borrower Sole Proprietor (JBSP) is a mortgage structure where more than one person is named on the mortgage as a borrower, but only one person is the legal owner of the property. All borrowers are jointly liable. It is sometimes used to help first-time buyers with parental support without transferring a share of property ownership to the parent, which can have Stamp Duty and inheritance implications.

Can Tembo help with remortgaging?

Yes. Tembo handles remortgages as well as purchase mortgages, including coming off a fixed rate and switching lender.

What deposit do I need to use Tembo?

Deposit requirements depend on the specific lender and product, not on Tembo. UK residential mortgages typically require a minimum 5 percent deposit, though many competitive rates start at 10 percent or 15 percent. Tembo will confirm the options available based on deposit size, credit history, and income.

Does Tembo cover the whole UK mortgage market?

Tembo operates from a lender panel. Whether that panel covers the whole market, a large part of it, or a limited range must be disclosed to the customer under FCA rules, typically in the Initial Disclosure Document issued at the start of advice.

What happens if my mortgage application is declined?

If a lender declines an application, Tembo\'s adviser can usually approach alternative lenders on the panel, or suggest a different scheme structure. Users should also check their credit file on a UK credit reference agency such as Experian, Equifax, or TransUnion to understand potential reasons for the decline.

Where to Learn More

Official information on current products, eligibility, and fees is on Tembo\'s own website. Regulatory status can be checked on the FCA register at register.fca.org.uk. Free impartial guidance on first-time buying, Help to Buy, and mortgage affordability is available from MoneyHelper, the UK government-backed guidance service. HMRC rules on Stamp Duty Land Tax, including first-time buyer relief, are published at gov.uk.

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