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Open a Cash Lifetime ISA today and earn 4.30% AER (variable) interest on your savings. Over 5-years, that’s hundreds more in your pocket than with the closest market competitor.


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Is now a good time to save money for a house?

Anya GairAnya Gair
Last Updated 13 June 2024

Saving for a house is a huge goal to work towards, and can feel daunting to start or keep up with - especially when rising house prices and high interest rates make homeownership feel further out of reach. At times like these, it’s okay to feel discouraged. But right now could be the best time to focus on putting money towards your first home.

In this guide

  • Is now a good time to save?
  • Will savings rates go up in 2024?

Is now a good time to save?

At the moment, interest rates are high - which is good for savers. This means that you could earn a decent rate of interest on any funds you put into a savings account. If you want to save for a big life milestone like saving for a house, it’s always better to start sooner rather than later. On average, it takes 10 years to save for a house, so even if you can only afford to put a little away at the moment, it’s better to start the clock ticking. 

Plus, if you use a Lifetime ISA to start your house fund, you’ll get a free 25% bonus on top of your savings from the government each tax year, up to £1,000. This is as well as the interest rate your LISA provider offers you if you go with a Cash Lifetime ISA. 

At Tembo, it’s our mission to help the next generation of buyers get on the ladder sooner. That’s why with our Cash Lifetime ISA, you get our market-leading 4.3% AER (variable) interest rate*. Over 5-years, saving for a house with Tembo would increase your deposit by hundreds versus the next best available rate! Get started here.

Read our guide on Lifetime ISAs here 

You might also like: How to set and reach your savings goals

Save for your first home with the market-leading Cash Lifetime ISA

Save up to £4,000 each year towards your house deposit and get a 25% government bonus. Open an account with just £1 or transfer today.

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If you want to start saving for a home, here are 4 reasons to keep working towards your savings goal:

1. Progress is progress

You might not be able to put as much towards your first home fund as you did before. But, over time, any amount adds up. If you save £50 every month, that’s £600 by the end of the year (which is a whole lot more than £0).

There’s no “perfect” time to start saving for a house. Although it would be nice, there are no guarantees that house prices will go down, and savings rates will stay high while you save for a house fund. So if you wait for conditions to be “perfect” before you start saving for a home, you might never buy a place.

2. With a LISA, your savings get a boost 

With a Lifetime ISA, you can make the most of your savings thanks to the free 25% bonus from the government. For every £4 you put into your LISA, you get £1 free from the government. That means if you max out the account each tax year, you’ll get up to £1,000 in bonuses for free.

Plus, if you open a Lifetime ISA on the Tembo app you’ll benefit from our in-built features which help you boost your house fund even more. This includes being automatically entered into our cash giveaways each month, and having a personal Gift Link to share with loved ones - so they can put birthday or Christmas money to good use and top up your pot.

Read more: 12 reasons why you should use Tembo to save for a house

3. The more you put in, the less you’ll owe

Putting down a bigger house deposit means you need to borrow less from a lender for a mortgage. With a smaller mortgage loan, you’ll be able to access lower mortgage interest rates,  helping to bring your mortgage repayments. You’ll also own more of the property outright.

You might like: 6 ways to get lower mortgage interest rates

4. Boost your bidding power

If demand for houses is high when it comes round to buying your first home, you might have to offer above the listed price for a home. In most cases, the person with the highest bid will be given the opportunity to buy the property. This is what’s known in the industry as “offers over”.

The more money you can put towards your home, the more you can up your chances of outbidding the competition 💪

Learn how to negotiate house price in this guide.

Will savings rates go up in 2024?

Right now savings rates are high, but they could fall later on in 2024. This is because it’s widely expected that the Bank of England will lower its base rate in the second half of the year if inflation continues to fall. The base rate impacts what interest rates banks and building societies offer on their loan and savings products. When the base rate falls, this tends to lead to lower interest rates.

So opening a Lifetime ISA sooner rather than later will allow you to make the most of the high saving rates right now.

Start your journey to homeownership today

Saving for a home is no piece of cake, especially nowadays. But we want to help you make progress towards buying your first home, no matter what’s going on out there. Join thousands of first-time buyers like you and install the Tembo Lifetime ISA app today.

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Coming soon:

Tembo Cash ISA

We know that your savings goals don’t vanish once you’ve bought your first home, or you might want to deposit more than £4,000 each year. So we’re launching a Cash ISA; so you can save up to £20k each year, tax-free.

FSCS-protected up to £85,000

Tax-free deposits up to £20,000

By signing up to receive updates about our Cash ISA, you will be agreeing to our email marketing consent. This gives us permission to send you marketing communications via email with updates on our Cash ISA, which you can unsubscribe to at any time. Read our Privacy Policy here.


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