Tembo has raised £16m in growth funding as it looks to scale its savings and mortgage platform and increase its share of the UK first-time-buyer market.
The digital savings and mortgage business said the new capital will support further development of its end-to-end homebuying platform, underpinned by its proprietary underwriting technology.
The round was led by Gresham House Ventures, with participation from existing investors Goodwater Capital, Aviva Investors, McPike Family Office, Love Ventures and Ascension, alongside new investment from the British Business Bank via Ascension.
The funding follows a period of rapid expansion. During 2025, Tembo’s savings arm grew tenfold to reach £3bn in assets under administration, as more customers used its app to save towards a deposit and arrange a mortgage. The business said it is on course to achieve a 20% share of the UK first-time-buyer market within the next two years.
FROM SAVING TO OWNING
Tembo positions itself as a combined savings and mortgage platform. Through its app, customers can save across a range of products, including Lifetime ISAs, Cash ISAs and Fixed Rate ISAs, with the aim of building a deposit more efficiently.
It recently launched HomeSaver, a combined savings and mortgage product that offers a rate of 5.24% on savings for customers who use Tembo’s digital mortgage advice service to buy or remortgage. The model links savings and borrowing more closely than is typical in the mainstream market.
Once a purchase has completed, the app allows customers to track their mortgage and view remortgage options with their existing lender and across the wider market.
TECHNOLOGY-LED UNDERWRITING
Founded in 2020 by Richard Dana, Eddie Ross and Geoff Wright, Tembo began as a digital mortgage broker focused on improving affordability for borrowers who may not meet standard criteria.
At the centre of the platform is its proprietary underwriting technology, which is designed to broaden access to homeownership for customers who may struggle under traditional affordability assessments. The firm said its in-app mortgage journey is now the highest-converting part of the business.
Tembo has also built partnerships with more than 100 organisations, including Aviva and Saga, integrating mortgage guidance and affordability tools into partner customer journeys.
Richard Dana, co-founder and chief executive of Tembo, said: “This investment is a major milestone for Tembo as we continue building a platform that doesn’t just help people find and secure a mortgage, but puts them genuinely in control of their journey to homeownership, from the first pound they save to the day they get the keys.
“The time has come for a more digital, data-led approach to consumer mortgage and wealth journeys, and we believe Tembo is perfectly positioned to become the market leader over the coming years as more people look for a smarter, end-to-end way to get on and move up the property ladder.”
Rohit Mathur, investment partner at Gresham House, said: “Home ownership in the UK has become one of the hardest financial milestones to reach, despite a £1.6 trillion mortgage market.
“Home buyers, especially first-time buyers, are expected to save more, faster, while navigating an increasingly complex mortgage landscape. Tembo brings those pieces together in one platform, helping people save smarter with its innovative products, and access mortgages with confidence – all with a digital-first experience.
“We see Tembo as a critical platform for improving access to home ownership in the UK, which is exactly why we chose to lead this round.”
Tembo has won Best Mortgage Broker at the British Bank Awards for four consecutive years and said it has received 5,000 five-star reviews across Trustpilot and Google in the past 12 months.
