Buyers looking to move home or get on the property ladder may want to consider opening a Club Lloyds current account.

Lloyds bank has cut rates across its exclusive Club Lloyds mortgage rates with a number of best buy deals now on offer, including a two-year fix below 3.5 per cent.

Those prepared to switch to a Lloyds bank account can also benefit from a bumper £250 current account switching bonus that runs until early February.

New and existing customers who move from another bank to a new Club Lloyds account will receive the payment within 30 days of switching. 

However, they can apply for a Club Lloyds mortgage deal as soon as the account is up and running. 

The Club Lloyds mortgage products are available to home movers and first-time buyers.

The lowest rate is the 3.47 per cent two-year fix with a £999 fee attached, but that's only for those with at least a 40 per cent deposit.

It means someone with a £200,000 mortgage with a 25 year repayment term could expect to pay £998 a month. 

For those buying with a 25 per cent deposit, Club Lloyds is offering a 3.52 per cent rate with a £999 fee.

On a £200,000 mortgage with a 25-year repayment term that will work out as £1,004 a month.

The next lowest deal is a 3.61 per cent two-year fix with Barclays with an £899 fee.

Someone buying with a 15 per cent deposit, can secure a 3.65 per cent rate with Lloyds, with a £999 fee.

This is better than the next best deal offered by Halifax, at 3.75 per cent, which also comes with a higher £1,099 fee.

Perhaps even more noteworthy is that Lloyds is now offering a market leading two-year fix to borrowers with a 10 per cent deposit.

Its 3.96 per cent rate beats HSBC's 4.02 per cent deal, albeit it does come with a slightly higher fee of £999 compared to £749.

On a £200,000 mortgage being repaid over 25 years, that would work out at £1,051 a month. 

Aaron Strutt of mortgage broker Trinity Financial thinks the Club Lloyds mortgage deals are great value for money.

However, he says people will have to apply directly with the bank to benefit, rather than using a broker.

'Any sub-3.5 per cent rate offers really good value for money at the moment and it is a good option,' says Strutt.

'The overwhelming majority of mortgages are submitted by brokers apart from when it is through a few lenders like Lloyds Bank, First Direct and the Yorkshire Building Society.'

Strutt says the danger with having to go directly through the bank is that it tends to be a slower process. 

'Some mortgage lenders work so quickly now that I suspect it is possible for some borrowers to get a mortgage offer out before Lloyds has booked the mortgage appointment and gone through the current account opening process,' he warns. 

He also thinks there could be even lower rates coming soon. 

'There is not much difference between the Lloyds rates and the Santander, Halifax and Barclays deals,' says Strutt.

'Funding costs will have to drop a fair bit more as well as the Bank of England base rate before fixes get close to 3 per cent but anything is possible. 

'I wouldn’t rule out 3 per cent rates out especially if the UK economy continues to struggle and the government push the Bank of England to do more to kick start growth.'

Should you open a Club Lloyds account to get access?

If someone is on the verge of buying or currently going through the process, it could be worth considering.

However, it would be wise to check that you'll be eligible before cancelling any other application.

In order to qualify for the £250 switching reward, you'll need to use the official Current Account Switching service through the app or online.

Club Lloyds has a £5 monthly fee, but this is refunded each month you pay in £2,000 or more.

This account has no fees on debit card spend abroad and a choice of either a 12 months Disney+ subscription, cinema tickets, Coffee Club and Gourmet Society membership or an annual magazine subscription.

It's worth pointing out that a 0.1 percentage point mortgage rate discount for Club Lloyds customers also applies to remortgage products, although these are not best buys.

For example, rates start at 3.82 per cent on a two-year for someone remortgaging with at least 40 per cent equity in their home, or 4.02 per cent if fixing for five=years.

In terms of how much someone can borrow, Lloyds offers a first time buyer boost that will allow them to borrow up to 5.5 times salary; it requires a minimum 10 deposit and £40,000 annual salary as a minimum.

Nicholas Mendes of mortgage broker John Charcol urges potential switchers to think carefully before switching.

'I wouldn’t advise buyers to open an account solely to chase the headline rate until they’ve spoken with a Lloyds mortgage adviser to confirm they meet the criteria and that Lloyds can offer the level of borrowing they’re looking for.

'For truly vanilla cases, I’m sure this product will be extremely attractive. However, borrowers with more complex income, circumstances or credit histories may find that Lloyds is unable to offer the loan size or terms that initially caught their attention.

'It’s also important to stay in regular contact with a mortgage broker even if you choose to apply direct. 

'While a 3.47 per cent and 3.52 per cent rate is clearly compelling today, there’s no guarantee they will remain the best option throughout the application process. 

'This is where a broker can really add value - monitoring the market and potentially saving many thousands over the life.'