The Lloyds Bank Switcher Service offers no charge for the valuation and basic legal costs to those people remortgaging to Lloyds Bank.
Marc Page, mortgages director at Lloyds Bank, said: "This is a great offer for those looking to remortgage and save money on their monthly payments.
“Offers such as this, coupled with the support provided by our popular Switcher Service, show that you don’t have to move house to try and get a better deal on your mortgage.
“This is another demonstration of our commitment to help those already on the property ladder.”
Customers will receive the £500 on a pre-paid MasterCard which can be used at retailers displaying the MasterCard symbol.