Lloyds TSB has announced the second stage of its AIRMILES partnership, with the launch of an AIRMILES mortgage.

Customers who opt for the new AIRMILES product will receive a lump sum of 6000 airmiles on completion of their mortgage and will earn an additional 50 airmiles each month for the life of the fixed rate.

The AIRMILES mortgage will be available from Wednesday 7th May 2008 and will be offered on a range of three year fixed rate products, with rates starting from 5.89%.

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.”

Over the three year fixed period customers could earn approximately 7800 airmiles. Collectors can use their airmiles on a range of rewards, including the following:
- A return flight to any zone four destination, including Barbados, Hong Kong or Delhi (6000 airmiles)
- Five return flights to Barcelona, Rome or Prague (1500 airmiles per return flight)
- 19 haircuts at a top salon (400 airmiles per haircut)
- Six trips to the theatre, with dinner for two people (1250 airmiles per trip)
- 10 cases of deluxe wines ( 750 airmiles per case)

Customers can also benefit from a 100 airmiles bonus if they choose to take out Lloyds TSB combined contents and buildings insurance in conjunction with their mortgage.

Alison Burns continues: “The AIRMILES partnership has proved extremely popular with credit card customers and we hope to replicate this success with the introduction of a reward mortgage. This is a brand new concept for the mortgage market and part of our ongoing commitment to provide customers with innovative products.”

The Lloyds TSB AIRMILES mortgages comes as a three-year fix rate deal: