Until 1 March the cashback can be used against any costs of switching from another lender.
The bank’s ‘Switcher Service’ offers customers a dedicated mortgage adviser and no charges for valuation and basic legal fees.
Andy Hulme, mortgages director at Lloyds Bank, said: "Many people could save money by remortgaging but some may be put off by the initial costs involved.
“This latest offer helps by providing £500 towards any costs customers might incur by moving their mortgage.
“In addition, our popular mortgage Switcher Service tries to make switching to Lloyds Bank as easy as possible.”
Lloyds is also rewarding loyalty, as customers with a Club Lloyds current account can receive a mortgage rate reduction of 0.20%.
Remortgage rates from the bank include 2-year fixes at 1.94% to 60% LTV, 2.24% to 75% LTV and 2.69% to 85% LTV, all with a £995 fee.