Customers who opt for the product will receive a lump sum of 6,000 airmiles on completion of their mortgage and will earn an additional 50 airmiles each month for the life of the fixed rate.

The mortgage will be available from 7 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 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.”

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.

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

Sean Gardner, spokesperson for comparison site MoneyExpert, said: “At first glance you could be forgiven for thinking Lloyds TSB had just launched a mortgage laden with gimmicks. The product is called the Airmiles Mortgage and it openly suggests a family of four could benefit from a dolphin-watching session or at a trip to Legoland once the three-year period on the mortgage has expired.

“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.

“Anything that eases the financial pressures on homeowners is to be welcomed. Lloyds TSB has included an option of paying no upfront application fees if you’re short of cash, which at least gives you a range of options if you’re thinking of applying.”