Frequently Asked Questions

How does Tembo save me money?
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By increasing the size of your deposit, we are able to unlock much lower interest rates on your mortgage. This is because you’re borrowing less of the property’s total value, so the lender is taking on less risk.  This ratio is called Loan to Value (LTV). While lower deposit 95% and 90% LTV mortgages are available, the interest rates on these products can be eye-watering.  We try and increase the deposit size by taking a small mortgage against a family members home, which can result in a significant reduction in the overall amount of interest paid for the same amount of borrowing.

How much will I be able to borrow?
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Lenders will typically let you borrow up to 4.5x your combined income. So, if you’re earning £25,000, you could borrow up to £112,500.   Some lenders go up to 5.5x but there can often be stricter criteria on deposit size and credit score.  We’ll also take into consideration any commission or other earnings, so be sure to include those in your plan. If you have a homebooster* on board, then we’ll increase your affordability with a deposit or income boost*, which will be reflected in your Tembo plan.

Can Tembo help me buy with no deposit?
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Yes. Providing you’re eligible for either a deposit boost*, then we will create a deposit for you with the help of your homebooster*. The ‘boost’* can be a loan against your homebooster’s property with the proceeds put towards your deposit.  Our smart technology will calculate the optimum amount to help you buy your dream property in the most affordable way.

Is Tembo only available for first-time buyers?
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The majority of our customers are first-time buyers, but we’ve also helped quite a few second steppers too.  We’re not an exclusive bunch! We regularly work with second-time buyers or movers who are ready to buy a new property but might be struggling to afford their dream home.

Can I get a mortgage with Tembo if I have bad credit?
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If you have an active Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA) or County Court Judgement (CCJ), then we recommend that you speak to a specialist adverse credit broker. However if you have a low credit score but none of the above, then we might be able to help. By decreasing the amount you are borrowing with a deposit boost*, you’ll be reducing your ‘risk’ to the lender, so don’t let a low score deter you - create a plan and say hello.

How long does it take to get a mortgage with Tembo?
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Depending on whether you’ve found a property yet, the complexity of the case, and how quickly you and your homebooster* (if you have one) get your documents back to us, it could take anywhere from 2 days if you'd had an offer accepted to a few months if you haven’t yet found your home.

I don’t have a homebooster*, can Tembo still help?
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If there’s no homebooster in the picture, but you’re eligible for a mortgage, then we can absolutely help you. Complete a plan online and book a call in with our team.

Does Tembo charge a fee?
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Tembo usually charges a fee for mortgage advice. Our fees vary from £249 to £749 depending on your needs and circumstances. The fee isn’t payable until your mortgage application is submitted to the lender, and your dedicated broker will explain your fee at the earliest opportunity so there won’t be any surprises.

Will Tembo speak with my homebooster*?
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Absolutely. Your homebooster* can join the journey as soon as you’d like them to, and will definitely be involved after your first call with our broking team. Once we get closer to application, our team will usually speak with the homebooster* separately, as our affordability checks will cover their personal finances in more detail.

Can I pay the monthly interest for my homebooster*?
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Many of our buyers will pay the monthly repayment for their homebooster* - in fact the combined mortgage charges for the homebuyer and homebooster* mortgage are often less than their previous rent. However, it’s important to note that the legal obligation for paying the mortgage sits with the homebooster*.

Which lenders do you work with?
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We work with over 80 lenders including all of the UK’s major mortgage providers and will scan over 20,000 different products to get you the best deal available on your homebuyer mortgage.

What is a homebooster?
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A homebooster* is a willing family member, or in certain cases a close friend, who would like to help a home buyer.  There are broadly two ways the homebooster can help. They can either provide a Deposit Boost* which is a small mortgage against a property they already own, with the proceeds used to increase the size of the home buyers deposit. Alternatively, if they don’t own a property or would prefer not to take on a mortgage on it, they could consider an income boost.  An income boost is where the family member in effect allocates some of their income to the home buyers mortgage so the homebuyer can borrow more.  The home buyer can pay the monthly repayments, but in the event they were unable to pay the family member would be responsible.

 

What is a Deposit Boost?
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A Deposit Boost* is a small mortgage against a property that is owned by a willing family member or, in some certain cases, close friend.  The funds that are released by this mortgage are then transferred over to be put towards the home buyers deposit.  There are a range of mortgage types that could be used for the Deposit Boost, depending on circumstances.  These include a Retirement Interest Only mortgage, an interest only mortgage or a repayment mortgage.   

What is an Income Boost?
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An Income Boost* is when a family member, or in certain cases close friend, in effect allocates some of their income to the home buyers mortgage so the homebuyer can borrow more.  The home buyer can pay the monthly repayments, but in the event they were unable to pay the family member would be responsible. The main product used is called a joint borrower, sole proprietor mortgage.

What are the risks involved?
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This depends on what support, if any, you decide to give.  For a Deposit Boost* as with any loan, the risk is that if repayments aren’t made, your home may be repossessed.  For an Income Boost* in the event the homebuyer was unable to pay the family member would be responsible. Our mortgage advisors will work with you to ensure that the boost* is affordable based on any income you may have as well as your pension.

If my homebuyer defaults on their mortgage, will I be affected?
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Not if you opt for a Deposit boost* as the homebuyer’s mortgage and your mortgage are two separate products, meaning if the buyer misses a payment or has any other difficulty with their mortgage there will be no impact on your credit score and you wouldn't be liable to pay.  For an Income Boost, in the event the homebuyer was unable to pay the family member would be responsible as they are included on the homebuyers mortgage.

What are the repayment terms of the deposit boost*?
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You can discuss the repayment options with one of our experts. If you opt for retirement interest only or interest only then the interest payments are monthly. When it comes to the capital on these loans, the terms can be flexed to suit your needs. Most often it isn’t repayable until you move home, if you go into care or die. Alternatively you could opt for capital repayment whereby the loan amount would also be repaid each month in addition to the interest.

Am I eligible if I still have a mortgage remaining?
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As a general rule of thumb, you’ll need to have paid off 50% of your mortgage before you’ll be eligible for a deposit boost*. However, there are other options available if you haven’t yet reached that milestone but you’d still like to support your loved one. You could also be eligible for an Income boost if you had a mortgage outstanding.

Does it matter how old I am?
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It depends on what you choose to do. For the Deposit Boost type products we can arrange loans for booster in their 70's and 80's. For Income Boost type products there is an upper age limit on when the loan must be repaid. That is generally 75 years old, although some lenders will go up to 80.

Is the boost* a gift or a loan?
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In order to benefit from the lower interest rates on the first-time buyer mortgage, the money must be formally gifted by the homebooster* to the homebuyer at the time of the mortgage application. However, there is nothing to stop this gift being returned at a later date - it all depends on the wishes and financial position of those involved. 

If the homebooster* does not want to gift the money, then it can be loaned to the homebuyer.  However, this will mean the rates the first-time buyer pays on their loan will be higher as the lenders will consider it to be a great risk.

What are the inheritance tax benefits?
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Tembo is not authorised to give tax advice. In passing on some of your wealth earlier in your life, a deposit boost* could have inheritance tax benefits for families, we recommend you seek specialist advice from an advisor to find out more.

I’m not sure about the deposit boost*. Are there other ways to help my buyer get on the ladder?
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In short, yes. There are a number of other products available, including joint borrower sole proprietor (JBSP) mortgages, guarantor mortgages and ways of supporting your loved one which allow you to pay off capital and interest monthly. We are always focused on the best outcome for our customers, so our mortgage experts will consider all options to find the perfect product for you.

What is a homebooster?
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A homebooster* is a willing family member, or in certain cases a close friend, who would like to help a home buyer.  There are broadly two ways the homebooster can help. They can either provide a Deposit Boost* which is a small mortgage against a property they already own, with the proceeds used to increase the size of the home buyers deposit. Alternatively, if they don’t own a property or would prefer not to take on a mortgage on it, they could consider an income boost.  An income boost is where the family member in effect allocates some of their income to the home buyers mortgage so the homebuyer can borrow more.  The home buyer can pay the monthly repayments, but in the event they were unable to pay the family member would be responsible.

What is a Deposit Boost
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A Deposit Boost* is a small mortgage against a property that is owned by a willing family member or, in some certain cases, close friend.  The funds that are released by this mortgage are then transferred over to be put towards the home buyers deposit.  There are a range of mortgage types that could be used for the Deposit Boost, depending on circumstances.  These include a Retirement Interest Only mortgage, an interest only mortgage or a repayment mortgage.   

What is an Income Boost?
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An Income Boost* is when a family member, or in certain cases close friend, in effect allocates some of their income to the home buyers mortgage so the homebuyer can borrow more.  The home buyer can pay the monthly repayments, but in the event they were unable to pay the family member would be responsible. The main product used is called a joint borrower, sole proprietor mortgage.