The bank has now reached the £1bn it committed to lending earlier this year, meaning HSBC will now make £1.5bn available to home buyers requiring 90 per cent loan to value in 2009.
HSBC head of mortgages Martijn van der Heijden says: “We committed £15bn to mortgage lending in 2009 – double our 2007 lending – and £1bn of this was made available exclusively to home buyers with deposits of just 10 per cent. Demand has been very strong and we have reached this target, so we are now committing another £500 million to this vital segment of the market.”
Van der Heijden says research conducted in August last year into British home buying intentions found that 10 per cent of Britons were keen to move house or get on the property ladder, but had decided to hold off for at least six months. More than a third said they did not want to buy while prices were falling, while 36 per cent were concerned about the rising cost of living.
He says: “It is a different picture today – houses prices seem to have bottomed and rates are low – and many of those who put off their purchase last year are starting to look around again.”