What is a Deposit Boost?
This service involves two separate mortgages. The first is a mortgage taken out by your family member or friend (the booster) on their property. The proceeds are then gifted to the buyer to put towards their house deposit. The second is a mortgage needed for the buyers home.
So let’s say your dream home is £200,000 but you don’t have a 5% deposit saved.
With Tembo and an eligible booster, we could get you that home.
Your dad wants to help you with a deposit
But without the cash to hand, he turns to Tembo. Our family mortgage specialists assess his eligibility and recommend the best way to unlock money from his property with a Deposit Boost.
See the available options.
He releases £20,000 from his property and gifts it to you
As the Deposit Boost is in your dad's name, he is legally responsible for monthly payments. Any arrangement for the buyer to pay this back to them is a personal agreement between the family.
Repayments start at £22p/month for a £10,000 loan.
With your new 10% deposit, we find you a great mortgage to buy your home
A bigger deposit means lower interest rates, and we compare thousands of products to get you a great deal on your mortgage.
Your Booster has helped you get on the ladder!
Plus, the funds from the Deposit Boost are legally gifted, meaning your dad could reduce his inheritance tax liability. You could return the £20,000 further down the line depending on your circumstances.
Tembo does not provide tax advice. We recommend you seek advice from a professional.
Time to enjoy your home!
Based on a 2.59% interest rate
*Numbers shown are calculated based on a Retirement Interest Only mortgage. They are illustrative only and do not constitute advice.
Monthly payments start from as little as £22 to access £10,000. Plus, our mortgage brokers will run affordability checks for the Booster to be sure the Deposit Boost is suitable.
As with all loans and mortgages, it's important to understand the potential risks and eligibility criteria when making a decision.
There will be debt against the Booster's home
As with any mortgage, there is a risk of repossession if monthly payments are continuously missed. Our team of mortgage brokers will carefully assess the affordability of the Booster before submitting an application to mitigate the risk of this happening.
An existing mortgage will affect eligibility
Tembo doesn't offer second or third charge mortgages, so to be eligible for our Deposit Boost, the Booster will need to have either paid off their mortgage in full, or have less than 60% remaining.
The Booster will need to prove affordability
As the Deposit Boost is a mortgage product, Boosters will need to pass a credit check and prove affordability. If they are overcommitted with existing borrowing and outgoings, or their income isn't sufficient they may not be eligible.
Our average Deposit Boost user saves £14,000 over 5 years in interest fees alone! More money for your family, less for the banks.
Interest paid over 5 years
On average, it takes a first-time buyer 7 years to save a house deposit. That's based on saving 20% of each month's salary.