HSBC reserves £15bn for mortgage borrowers this year

During 2012 HSBC intends to make available at least £15 billion in mortgages to UK homeowners, including £3 billion specifically set aside for first-time buyers.

With the UK mortgage market expected to shrink in 2012 to £133 billion, according to the CML, this commitment by HSBC represents a market share of 11.3%, which will be the largest market share the bank has ever had.

In the first half of 2011, HSBC lent £6.7 billion in residential mortgages, 35% more than the same time the year before.

Of the £15 billion HSBC will be making available for 2012, the majority will be new money into the mortgage market, effectively making the bank one of the largest providers of new mortgage funding in the UK. This commitment will help in the region of 150,000 homeowners and 27,000 first time buyers.

Martijn van der Heijden, head of lending at HSBC, said: “In 2011 we offered UK borrowers some of the most competitive rates around and we plan to continue this in 2012.

“While some estimates suggest mortgage lending in the UK will fall this year, HSBC has no intention of closing its doors to customers, nor will we compromise our reputation for responsible lending.

“Today’s announcement to make at least £15 billion available to UK homeowners with £3billion explicitly for first time buyers demonstrates HSBC’s commitment to continuing to help people move up or indeed take the first step onto the housing ladder.”

HSBC is currently offering a number of market-leading mortgage products including a range of fee-free lifetime tracker products starting from a rate of 2.49% for those with a 35% deposit in its January sale.

It is also offering the only sub-4% rate for first-time buyers with a 10% deposit – a fee-free 2-year discount mortgage at an interest rate of 3.84%.