HSBC has become the first bank to make a new year’s resolution for 2009 and one that pleases the government. The bank has pledged that next year it will increase its volume of mortgage lending by around 20 percent, taking its total mortgage lending to £15 billion, double the amount from 2007.
Although HSBC has said it will be increasing its lending because it sees the credit crunch as an opportunity to increase its market share, it will not however be relaxing its lending criteria. It does offer a 90 percent mortgage, which many banks have still not re-introduced yet.
This year, HSBC has fared better than some banks as its 4 percent share of the mortgage market has meant it is financially stronger than many of its rivals and in 2008 it has taken advantage of this and has accounted for 15 percent so far of new lending this year.
John McFall, chair of the Treasury select committee, said: “I’m extremely pleased to see HSBC’s initiatives this weekend. Making money available for lending is one of the most important economic issues facing us today.”
This move by HSBC has been welcomed by all interested in boosting the mortgage market, including the government, first time buyers, those wishing to remortgage and mortgage advisors.
