Tembo has introduced a new incentive for first-time buyers, offering a 1% bonus on the value of a customer’s Lifetime ISA when they use its free mortgage service to purchase a home.

The offer is available to both new and existing customers and is the only one of its kind in the market. The 1% payment is in addition to the LISA’s underlying interest rate of 4.10% AER variable and will be paid directly to the buyer’s nominated bank account after completion.

To qualify, customers must open a Tembo Lifetime ISA by 25 September 2025 and complete their purchase using the offer by 30 September 2026. Tembo Savings customers using the mortgage service benefit from fee-free advice, which the firm says can save up to £749 compared with its standard brokerage charge.

Holders of LISAs with other providers can also participate by transferring their account to Tembo. The company says this can be set up in less than ten minutes via its Savings & Homebuyer app.

Tembo’s own analysis suggests that first-time buyers who use a LISA to save for a deposit buy on average four years earlier than those who do not, reducing the total mortgage interest paid by around £1,500.

Richard Dana, founder and chief executive at Tembo, said: “With mortgage rates easing and house prices holding steady, the outlook for first-time buyers over the next year is looking brighter.

“Our new Tembo Lifetime ISA Bonus offers an extra helping hand to those aiming to get onto the property ladder in 2026.”