Lloyds TSB Airmiles mortgage takes off as bank remains strong

07 May 2008 / by Rebecca Sargent
Lloyds TSB has today launched its new Airmiles mortgage which is the first of its kind and looks set to send its customers around the world.

The Lloyds TSB Airmiles Mortgage offers its customers 6000 Airmiles on the completion of their mortgage contract, enough for a return flight to a zone four destination including Barbados. Honk Kong and Delhi.

In addition to a lump sum of 6,000 Airmiles, a Lloyds TSB Airmiles mortgage customer will earn 50 Airmiles every month for the initial three years of the mortgage which will be on a fixed rate.

The new mortgage is Lloyds TSB's second product to be affiliated with Airmiles, its first was an Airmiles credit card. Alison Burns, director of network mortgage sales at Lloyds TSB said: "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."

Commenting on Lloyds TSB's latest addition, MoneyExpert.com's founder, Sean Gardner said: "At first glance you could be forgiven for thinking Lloyds TSB had just launched a mortgage laden with gimmicks. But it 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 per cent over three years the Airmiles mortgage is amongst the most competitive." He added.

As the banks new mortgage takes off, its latest trading statement shows that the bank remains one of the strongest on the high street. In a time of poor credit, when leading banks like RBS and HBOS are turning to their shareholders to raise capital, it seems that Lloyds TSB will weather the crisis alone.

The bank announced write-downs of just £387 million for the first quarter of 2008, whereas RBS, HBOS and others were forced to write off billions as a result of sub-prime mortgage lending. Consequently, the bank's balance sheet remains strong. Group chief executive, Eric Daniels, said:

"Our strong liquidity and funding capability have ensured that the Group has continued to raise wholesale funding at market leading rates. This gives the Group a competitive advantage and has enabled our corporate and retail relationship banking businesses to achieve strong levels of business growth in the first quarter of the year, capturing market share in a number of key areas whilst improving product margins."

©Fair Investment Company Ltd