Digital savings and mortgage platform Tembo has launched a new account that combines saving and homebuying incentives, offering customers a competitivereturn when they both save and borrow through the company.

The new HomeSaver account pays 5.5% AER to customers who save with Tembo and subsequently take out a mortgage through its service.

The rate is made up of a 3% variable savings rate and a 2.5% fixed “Tembonus”, payable after 12 months once the saver buys or remortgages using Tembo’s mortgage platform. The bonus is paid directly into the customer’s nominated bank account.

Tembo said the new product was developed in response to the challenges facing homebuyers in a market where deposit requirements remain high and mortgage affordability has tightened. With leading savings accounts currently offering up to 4.5%, the additional “Tembonus” aims to provide a meaningful boost for those trying to step onto or move up the property ladder.

The company, which launched in 2020, said HomeSaver builds on its mission to help people buy their first home sooner by integrating saving and mortgage services in a single digital platform. According to UK Finance, the average deposit for a first-time buyer now exceeds £68,000, while the average house price stands at £271,000.

Richard Dana, founder and chief executive of Tembo, said: “Tembo’s mission is to help people buy their home sooner. With HomeSaver, our third savings launch of 2025, we’ve combined savings and mortgages into one simple product that gives customers more value for every pound they put aside.

“By combining a market-leading savings rate with our award-winning mortgage service, free to all savers, we’re giving first-time buyers and remortgagers an added Tembonus to help them on their way.”