The bank said that it will refund a standard monthly mortgage payment in December, saying that customers typically struggled with household finances during the Christmas period.

The deal will apply to remortgage deals completed between now and 1 December 2015, although the application process must have started by 6 September 2015.

Customers will receive a bonus of up to £1,000 in December, refunded directly to their bank account.

Andy Hulme, mortgages director at Lloyds Bank, said the lender was looking to help families during the Christmas period.

“We are committed to providing good value through our mortgage offering, and this will help ease the financial burden on remortgage customers over the festive period, which we all know can be an expensive time of the year,” he said.

Remortgage rates currently available from Lloyds Bank include a two-year fix at 0-60% LTV with a rate of 1.59% with £995 fee for Club Lloyds customers, and 1.79% otherwise

Also on offer is a two-year fixed deal at 60-75% LTV, 1.79% with £995 fee for Club Lloyds customers, and 1.99% otherwise.