HSBC to lend 20% more to potential homeowners

Posted under General by Michael

HSBC, the largest bank in the UK will be lending 20% more to potential home buyers during 2009 than it offered in 2008. The amount will be almost double the mortgage funding it offered in 2007.

Responding to government’s call to the building societies and banks, HSBC has pledged to provide up to £15bn in loans in order to save housing market from a total crash.

Paul Thurston, HSBC’s managing director for the UK has commented that net mortgage lending in the country would decline in 2009. However he assured that HSBC would keep its doors open to customers and not compromise on its standing as responsible lender. The bank is committed to its lending up to £15bn next year, which would help housing industry to survive present upheaval in the market.

HSBC took lead last week in passing on full 1% bank rate cut to borrowers who held tracker mortgages. HSBC also offered 0.8% rate cut to borrowers of Standard Variable Rate mortgages.

HSBC, before making £15bn funding pledge, had announced creation of a new £3.4bn ($5bn) global fund for the businesses of small and medium sizes, of which it earmarked £1bn for businesses in the UK.

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