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 member's home, which can result in a significant reduction in the overall amount of interest paid for the same amount of borrowing.
For more details on how Tembo can save you money (including a monthly breakdown for both Booster and Buyer) check out our guide.