Tembo: Lifetime ISA
Build your house fund quicker with a Tembo Lifetime ISA
For many first time buyers, homeownership can feel like an uphill battle. With constant reports on the cost of living, and the average first time buyer now needing almost 10 years to save up for a deposit*, it’s easy to feel like no one is on your side.
That’s where Tembo and their market-leading Lifetime ISA come in. We’re here to help you build up your savings quicker, and potentially get onto the property ladder up to four years earlier*. But what is a Lifetime ISA? And how can it help you?
Tax treatment depends on individual circumstances and may be subject to change in the future.
What is a Lifetime ISA?
A Lifetime ISA (or LISA) is a tax-free individual savings account designed to help first-time buyers get on the ladder faster.
Aspiring homeowners can save up to £4,000 per tax year into a Lifetime ISA, and the government will boost your savings by 25% – meaning that you can get up to £1,000 for free, every tax year towards your first-home deposit.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
What types of Lifetime ISAs are there?
You can save into a Lifetime ISA in one of two ways:
- A Cash Lifetime ISA – where your savings will gain interest, as well as benefitting from the government bonus.
- Stocks & Shares Lifetime ISA – where your savings will be invested into the stock market. Although this option has the potential for higher returns, it is generally seen as a bit more risky than the Cash LISA.
Capital at risk. Past performance is not a reliable indicator of future results.
Who should I be saving with?
When it comes to saving providers, look no further than Tembo – our multi-award-winning savings partner.
With Tembo, your Cash Lifetime ISA savings will be boosted with their market-leading interest rate of 4.6% AER (variable), with no drop-off after year one. This means that over a five-year period, you could get hundreds more in your pocket versus the next best rate on the market.
Introducing Tembo
“Tembo is an award-winning digital mortgage broker and savings platform. The affordability gap is bigger than ever, and we’re on a mission to help people get on the property ladder, move up it, or stay in the home they love.
We know that one of the hardest parts of getting on the property ladder is saving a deposit, and – taking housing out of the equation – that being smart with your savings can help you on your way to a happier, more secure life.
That’s why in 2024 we launched our market-leading Lifetime ISA, the government-backed savings product that offers a 25% boost (up to £1,000) to your savings toward your first home or retirement. Our Cash Lifetime ISA helps first-time buyers save hundreds more versus the next-best competitor on the market.
In 2025, we’re giving savers the opportunity to save even faster with our competitive Cash ISA – allowing them to save up to £20,000 tax-free, every year. By saving with Tembo, our savers receive our award-winning mortgage advice fee-free.
Over 350,000 people have chosen to save with us so far, and with more plans in the pipeline, from ISAs to general savings accounts, this is only the beginning…” – Richard Dana, CEO of Tembo.
Based on saving £4,000 at the beginning of each year for five years. Calculations show at month 61 (after five years) Tembo customers saving at 4.60% would have £850.50 more than with the closest market competitor. Rates accurate March 2025, subject to change.
Ready to get started?
Looking to invest instead? Tembo Stocks & Shares Lifetime ISA investors go green with the Blackrock MyMap 5 Select ESG fund* – chosen for its ethical characteristics.
Already have a LISA? Transferring to Tembo is easy, and over five years that simple switch would increase your deposit by hundreds versus the next best available rate. Plus, we’ll have your money transferred in as little as four weeks.
By saving with Tembo, you’re getting access to more than just competitive rates…
- Track your daily interest gains in the Tembo app – with interest gained paid out every month.
- Find out how far you’re away from homeownership with our “Time to Buy” feature.
- Discover tips and tricks to get there faster with our first time buyer guides, free webinars and more.
- Get access to our fee-free mortgage advice through our multi award-winning mortgage service. They’ll be there from finding you the best mortgage deal until you get your keys!
Your home may be repossessed if you do not keep up with your mortgage payments.
Scan the QR code to download the free Tembo app
Disclaimer
^Share to Buy Ltd does not directly endorse or recommend Tembo and takes no liability for the service you receive, and can give no guarantees to levels of service, but recognises from its commercial experience of working with Tembo that they offer a service staffed by specialists with knowledge specific to Lifetime ISAs.
Sources
*https://www.blackrock.com/uk/individual/products/308822/mymap-5-select-esg-fund#/