he acquisition allows Tembo to further develop its unique proposition to help the next generation of future homeowners get on the property ladder sooner. With the acquisition, Tembo will now be able to offer its customers Nude’s award-winning Lifetime ISA and Nude customers will be able to take advantage of Tembo’s award winning mortgage broking service from within the app.

Details of the acquisition

Under the terms of the deal, which has recently been approved by the FCA, Tembo will acquire 100% of the shares in Nude Finance Limited

Tembo’s Chair, Jenny Watts, will also become Chair of the Nude Finance Board and Richard Dana, CEO of Tembo, will assume responsibility for day to day management of the Nude business. Crawford Taylor will step down as Nude CEO, but will continue to provide advice to the team.

Tembo continues to be fully supported by its loyal investors including Aviva, Ascension & Fair By Design, Love Ventures and the McPike Family Office. This transaction will allow Tembo to continue to build on the huge success of 2023 and continue to generate profitable, double-digit monthly growth as it continues to scale and grow in 2024.

Tembo already enables customers to increase their affordability with its innovative digital platform that specialises in helping families and friends support each other to get on the property ladder. On average, Tembo boosts a customer’s affordability by £82,000 with the support of Income and Deposit Boosts and family, and shared ownership buying schemes.

Saving for a deposit is a critical step for first-time buyers, but recent cost of living pressures means it is taking longer. While there are a number of deals for those with no deposit - the options and value significantly increase for those with a larger deposit. On average, a Tembo customer has a deposit of £74,000 equating to 26% of the value of the home they are purchasing.

Nude makes it easier and quicker for customers to save towards their first home deposit, with its award-winning app enabling customers to set savings goals and track their spending. 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 already helping 20,000 customers and the Tembo team expect this number to grow significantly, with planned enhancements to the proposition.

Family support and savings are currently the key drivers for first-time buyer activity

In 2023, the number of first time buyers fell to their lowest level in a decade, with Yorkshire Building Society estimating there were 290,000 first time buyer transactions completing.

This is primarily due to the housing affordability crisis in the UK with income to house price affordability now 8.3x in England, compared to 6.7x 10 years ago. As a result of this challenging market, it is estimated that half of all first time buyer transactions last year were supported in some way by family.

Even with family support, saving for a deposit is absolutely critical for first time buyers. One of the most effective ways to save for a deposit is with a Lifetime ISA. Lifetime ISAs have grown in popularity since being launched in 2017, with £1.7 billion being saved by over 600,000 future first-time buyers in 2022 (HMRC). Based on recent trends, this is set to continue to grow in coming years

Richard Dana, Founder and CEO at Tembo said: “We’re delighted to now be able to offer our customers access to an award-winning savings product. 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.”

Crawford Taylor, Founder and CEO at Nude added: “I started Nude to make a difference to people’s lives. Nude is a financial friend that’s really good with money, who’s there 24/7. The Nude team has built a unique proposition that is resonating in the market, changing the way people interact with the financial system. Nude helps people set a goal, engaging and motivating them and being with them every step of the way, starting with home ownership. Tembo has a very similar approach centred around home ownership and the acquisition is a perfect fit led by three very talented founders”