Earn free Airmiles as you pay off your home loan
Lloyds TSB mortgage deal also comes with competitive three-year fixed rate
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LLOYDS TSB has launched a mortgage which enables consumers to earn Airmiles as they repay their home loan.
The lender believes its Airmiles mortgage is the first of its kind. Under the deal people will receive 6,000 Airmiles when they first take out the mortgage, plus an additional 50 for every month of the mortgage term.
This means that over three years people could earn about 7,800 Airmiles, enough for a return flight to destinations such as Barbados, Hong Kong or Delhi, or five return flights to Barcelona, Rome or Prague, or six trips to the theatre with dinner for two.
The deal is available on a range of three-year fixed-rate mortgages, with rates starting at 5.89% for someone with a 25% deposit who paid a £995 arrangement fee.
People can also earn 100 bonus Airmiles if they take out Lloyds TSB’s combined buildings and contents insurance. The move is the second stage of Lloyds TSB’s partnership with Airmiles, after it launched its Airmiles credit card last year, which it said had been extremely popular.
Alison Burns, director of network mortgage sales at Lloyds TSB, said: “This new deal combines some of our most competitive rates, with a genuinely useful reward package. We all enjoy the idea of getting something for free and in a time when mortgage payments are a top priority, this offer enables customers to earn rewards on their essential spending.”
Sean Gardner, founder of MoneyExpert.com, said that while the mortgage looked like a gimmick, it actually offered a competitive rate.
He said: “At first glance you could be forgiven for thinking Lloyds TSB had just launched a mortgage laden with gimmicks. But this is a genuinely good deal and the rewards on offer are nice and simple to redeem; 7,800 Airmiles is worth plenty and should not be ignored in the final reckoning if you’re choosing a mortgage.
“Of course, nobody would advise that you selected your mortgage provider based on how many flights to Rome, cases of wine or free haircuts you’ll get. But with a rate of 5.89% over three years the Airmiles mortgage is among the most competitive.”
He said the average rate for a three-year fixed rate deal with a loan to value ratio of 75% was 6.44%.
