Free iPad with your mortgage? Borrowers warned to look past gimmicks when choosing a home loan

1st October 2014

Lloyds Bank is attempting to win new customers by offering a free iPad Mini to first-time buyers and home movers who take one of its mortgages.

The bank is offering the 16GB mini tablet with 4G, a 6GB data card and six months technical support to customers who apply between October 7 and November 27, 2014.

The bank said it would help customers to stay online while they are in the process of moving house.

Halifax, part of the same group, has been running an offer to pay customers back two months of mortgage interest, which ends  on October 6.

TSB , the new bank which has been created as a separate entity from part of Lloyds Banking Group, is running an offer to pay borrowers’  Council Tax for the first year in their new homes.

However, mortgage brokers have warned customers to be sure that the look at the total cost of the home loan and find the most competitive deal rather than choosing the product with the best giveaway.

Marc Page, mortgages director at Lloyds Bank, said: “Our customers have told us about the inconvenience of being unconnected when moving into a new house.

“By providing customers with a connected iPad, we’re enabling them to complete those domestic necessities very quickly, such as setting up bills, transferring money or simply surfing the internet. This should make the transition of moving into a new house even more enjoyable.”

Aaron Strutt of Trinity Financial, the mortgage broker, said: “It is highly unusual for a lender to offer an electronic device an incentive to attract new mortgage customers.

“Ideally borrowers shouldn’t let an offer like this sway them in their choice of home loan, especially as there is such a wide choice of cheap mortgages. Choosing a more expensive rate could cost a lot more than an iPad in the long run.”

You can find out which mortgage lenders are offering the best rates at MoneySuperMarket.com and compare two mortgage deals using the free calculator on MoneySavingExpert.com.

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