Lloyds today announced that they have launched a mortgage where borrowers can earn air miles, achieving what they believe to be a world first.

Under the terms of the deal, borrowers will receive 6,000 miles on completion of their mortgage. In  a novel way of keeping customers from remortgaging later in the term, Lloyds also offer 50 air miles per month as an incentive.

After three years, borrowers could have return tickets to such far flung places as Hong Kong or Barbados or five return flights to short haul destinations like Barcelona.

Roy Berry, Director at The Mortgage Provider, said "Thank heavens for Lloyds. At last some good news for borrowers used to hearing depressing stories about the mortgage market. The rates are pretty attractive too."

The airmiles deal is available on a range of three-year fixed rate mortgages, with rates starting at 5.89%. You must have at least 25% equity or deposit to qualify.

Alison Burns, director of network mortgage sales at Lloyds TSB, agrees: "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, of MoneyExpert.com, 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."