Borrowers are being tempted with free family outings, holidays, theatre tickets and bottles of wine by one of Britain's biggest mortgage lenders.

The inducements are part of Lloyds TSB Airmiles mortgage, which gives borrowers the chance to earn Airmiles and qualify for a range of "freebies" when they take out one of its range of three-year fixed rate home loans.

Borrowers - particularly those with deposits of 25 per cent or more - can get a cheaper mortgage elsewhere, so are being warned to consider the whole package not just the eye-catching gifts attached to the loans. But for others, the offer could represent a good deal.

Sean Gardner, of MoneyExpert, a comparison website, said: “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."

Customers who opt for a Lloyds Airmiles loan receive a lump sum of 6,000 Airmiles on completion of their mortgage. Borrowers earn an additional 50 Airmiles each month for the fixed term period. Over the three-year fixed period customers could therefore earn around 7800 Airmiles.

This is the equivalent of a return flight to a far-flung destination such as Barbados, Hong Kong or Delhi, or five return flights to a continental capital including Barcelona, Rome or Prague. The Airmiles can also be spent on haircuts at top salons, trips to the theatre and cases of wine.

Rates on the Airmiles mortgage start from 5.89 per cent, with a fee at £995, for borrowers with a 25 per cent deposit. Monthly repayments on the loan amount to £956.39, if you pay the fee upfront. Borrowers also have the option of adding the fee to the loan, but this will increase monthly repayments.

For customers who only have a deposit of 10 per cent, the deal isn't as sweet. They will pay a rate of 6.19 per cent if they can come up with a fee of £995 - taking monthly repayments to £983.95. A no-fee deal is also on offer, but the rate is 6.49 per cent for borrowers with a 10 per cent deposit.

Cheltenham & Gloucester (C & G) - which is also owned by Lloyds TSB - has a three-year fixed rate deal at 5.69 per cent with a fee of £1,094 for borrowers with a 10 per cent deposit. Repayments on this loan work out at £938.23. Therefore, the C & G deal is £1,546.92 cheaper over three years for a borrower with a 10 per cent deposit - more than enough to cover the cost of the flights. The C & G deal is £554.76 cheaper for borrowers who have a 25 per cent deposit.

The offer took mortgage experts by surprise today, as most banks and building societies have shied away from lending - raising rates and tightening criteria as part of a strategy to deter borrowers - since the start of the credit crunch last year.

Ray Boulger, technical Director at Charcol, the mortgage broker, said the deal showed the bank was prepared to increase its share of the mortgage market.

Mr Boulger said: "Lloyds TSB, along with Abbey and HSBC, are increasingly looking upon the credit crunch as an opportunity."

In a trading statement issued today, Lloyds said it had emerged "relatively unscathed" from the credit crisis, compared to competitors such as HBOS and the Royal Bank of Scotland.

The deal will be available from Wednesday to anyone wanting to buy or remortgage. It is an extension of the bank's popular credit card Airmiles programme, which has already been taken up by over a million customers.