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Family mortgage specialist Tembo has acquired Lifetime ISA provider Nude Finance.
Tembo says the deal will give it a platform to develop new propositions to help the ‘next generation’ of homeowners get on the property ladder sooner.
The deal will mean Tembo being able to offer customers Nude’s Lifetime ISA. In turn Nude customers will gain access to Tembo’s mortgage broking service from within an app.
Under the terms of the deal, approved by the FCA, Tembo will acquire 100% of the shares in Nude Finance Limited for an undisclosed sum.
Tembo’s chair Jenny Watts will also become chair of the Nude Finance board and Richard Dana, CEO of Tembo, will become responsible for day to day management of the Nude business.
Crawford Taylor will step down as Nude CEO but will continue to provide advice, Tembo says.
Tembo investors include Aviva, Ascension & Fair By Design, Love Ventures and the McPike Family Office.
Tembo offers families and friends the ability to support each other to get on the property ladder. Tembo claims its process can boost a customer’s affordability by £82,000 with the support of income and deposit boosts and family and shared ownership buying schemes.
Under the Lifetime ISA rules, qualifying first-time buyers get a £1,000 annual bonus for each £4,000 they save in a given year. This enables first-time buyers and their families to accelerate the time it takes to save for their house deposit. Nude is currently helping 20,000 customers and Tembo expects this number to grow significantly with planned enhancements to the proposition.
Tembo aims to reverse a national fall in first time buyers.
Tembo says that in 2023 the number of first time buyers fell to its lowest level in a decade with Yorkshire Building Society estimating there were 290,000 first time buyer transactions completing.
Richard Dana, founder and CEO at Tembo, said: “Crawford and his brilliant team have built an engaged and loyal customer base of future first time buyers and we look forward to continuing to grow and develop the business in the future.
“We’ve already been working with Nude over the past year and there is huge synergy in helping savings customers as they navigate the mortgage and homebuyer process. The broader Tembo proposition puts home at the heart of personal wealth – for most people and their families their most treasured and valuable asset.”
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