HSBC to up mortgage lending by 20%

HSBC is proposing to increase its mortgage lending by 20% in 2009, making up to £15 billion available to UK homebuyers and remortgagers, in total.

The bank, which also provides home loans via its online brand, First Direct, has been less affected by the credit crisis than some of its High Street rivals because of its focus on emerging markets.

It now seems keen gain a greater share of the UK mortgage market, having lent £7.8 billion in 2007, £12.8 billion in 2008 and potentially £15 billion next year.

New borrowers are being tempted with a lifetime tracker offset mortgage at 3.49% (base rate +1.49%) and a fee of £599. Also on offer is a lifetime tracker at 3.69% (base rate plus 1.69%) with a £399 fee.

Both have a maximum loan to value (LTV) ratio of 90% but the tracker is available at base rate plus 1.64% to those who need a maximum LTV of 60%.

The lender has also passed on last week’s base rate cut of 1% in full, taking its standard variable rate down to 4.44%, or 4% for First Direct.

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