Building your Tembo Plan
Increase the size of your house deposit with help from your family
What is a Deposit Boost?
A Deposit Boost is a form of remortgage taken out by your family member or friend on their property. The proceeds are then gifted to the buyer to put towards their deposit.
How a Deposit Boost works
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!
Let’s see a Deposit Boost in action
Discover how Alex was able to get on the property ladder with the help of his mum, Sally.
Remortgage options available to the Booster to release money from their property
Retirement Interest-Only Repayment
- This type of mortgage is like a standard interest only mortgage but with some differences that could be useful for over 55s.
- With this mortgage, unlike a standard interest-only mortgage, there is no restriction on the mortgage term. This means the capital is usually paid off when the last borrower moves into long-term care or dies.
- Lower monthly payments as the Booster only pays interest each month
- Rates typically 2.5%-3.99%
Retirement Capital Repayment
- This type of mortgage is like a standard repayment mortgage but with some differences that could be useful for over 55s.
- With this mortgage, unlike a standard repayment mortgage, there is no restriction on the mortgage term. This means the capital is usually paid off when the last borrower moves into long-term care or dies.
- Higher monthly payments as the Booster pays capital and interest back each month
- Rates typically 2.5%-3.99%
Standard Remortgage Repayment
- This type of mortgage is a standard repayment mortgage open to all borrowers but is not always suitable for those in retirement.
- With a standard repayment remortgage, the length you are able to take out the mortgage is restricted, and you'll have to repay the mortgage at a certain age (around 80).
- Choose between capital or interest-only monthly repayments depending on your preference
A Deposit Boost starts from as little as £22 p/m
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.
Risks & considerations
As with all loans and mortgages, it's important to understand the potential risks and eligibility criteria when making a decision.
Things to consider...
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.
The bigger the deposit, the lower the interest fees.
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
Try our savings calculator
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.
Thousands have used Tembo to discover how a Deposit Boost could get them their dream home.
Read our reviews to discover why our customers have rated us 'Excellent' on Trustpilot.
“We had several meetings to consider using a Deposit Boost to help one of our children buy a property. We were extremely impressed with them and their knowledge. We would not hesitate to recommend them in the future. ”
“Not normally one for reviews, but I found my chat with Tembo incredibly useful and definitely one of those "why isn't everyone doing it?" moments. Bit of a no brainer given the savings potential.”
“Extremely helpful from start to finish. We had quite a challenging case to deal with, but Tembo didn't give up until they found us a mortgage. ”
Let’s get you on the property ladder
Find out how our range of Boost products could help you buy your first home too.Check your eligibility