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First-time Buyer

Lifetime ISA deal with 'market-leading interest' launched

Lifetime ISA deal with 'market-leading interest' launched
Anna Sagar
Written By:
Anna Sagar

First-time buyer specialist Tembo has launched a Lifetime ISA (LISA) deal below 5%, following its acquisition of Nude Finance.

A LISA can be used to buy a first home or to save for later life. Customers can put in up to £4,000 per year until the age of 50, and the Government will add a 25% bonus to the savings up to a maximum of £1,000 per year.

From 9 February, the first-time buyer and family mortgage specialist will offer the Tembo Lifetime ISA with 4.3% AER variable interest rate.

The company said that this was the highest rate for a cash LISA in the UK.

The rate does not include any introductory or bonus rate and follows base rate movements.

The LISA is free to new customers with no monthly charge for the core account, and customer savings held in the account are eligible for protection by the Financial Services Compensation Scheme up to a maximum of £85,000 per individual.

Existing LISA customers with other providers can sign up to the app and transfer from their existing provider, with the firm saying that setting up the app and requesting a transfer should take under 10 minutes.

Richard Dana, founder and CEO at Tembo, added: “We’re delighted to now be able to offer our customers access to an award-winning savings product, which now has the market-leading interest for Cash Lifetime ISAs in the UK.

“Combining Tembo’s specialist range of family and affordability boost mortgages with Nude’s market-leading Lifetime ISA saving accounts will enable our customers to get on the property ladder sooner in a very challenging market for first-time buyers.”

The company announced that it had bought Nude Finance last week, noting that it would bolster its proposition for first-time buyers.

The Building Societies Association (BSA) and The Investing and Saving Alliance (TISA) have called for LISA and Help to Buy ISA reform.

They have pointed to the punitive LISA withdrawal penalty along with differing property price thresholds, and urged for changes to the schemes to be included in the upcoming budget.