Lloyds Bank will now refund one month’s standard mortgage payment for qualifying homemovers, up to the value of £1,000.

It has also made rate reductions across its first-time buyer range.

Andy Hulme, mortgages director at Lloyds Bank, said: “Offering cashback on a month’s mortgage payment is a great way to help homemovers settle into their new house and reduce their costs at what is an expensive time.

“Most people want to focus on the task of turning their new house into a home as quickly as possible, and a potential refund of up to £1,000 will help them do that.”

The cashback offer will be available on all homemover mortgages from Lloyds Bank, up to 95% loan to value, including the bank’s Help to Buy mortgage guarantee scheme products.

Within 60 days of completion, Lloyds Bank will make a payment to refund one standard monthly mortgage payment, up to £1,000, directly to the customer’s bank account.

In addition, any customer with a Club Lloyds current account can receive a mortgage rate reduction of 0.20 percentage points.

Meanwhile, the new first time buyer rates include:

• Two-year fixed at 75% LTV, cut by 0.40 percentage points to 1.99% with a £995 fee for Club Lloyds customers, 2.19% otherwise.
• Two-year fixed at 85% LTV, cut by 0.35 percentage points to 2.54% with a £995 fee for Club Lloyds customers, 2.74% otherwise.