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HSBC bullish on mortgage lending

Global bank aiming for greater market share

HSBC current account customers get paid a tiny 0.1% interest when they're in credit

HSBC current account customers get paid 0% interest when they’re in credit

HSBC is set to capitalise on its position as one of the more stable high street banks by grabbing a larger share of the mortgage market in 2009.

It has set aside £15bn ($22.3bn) to lend to home owners next year, roughly double the amount it lent in 2007.

New mortgage lending by all banks is predicted to come to a halt next year because the credit crunch means most do not have fresh funds to lend.

“We will be surprised if we do not have a bigger slice of a smaller market,” said an HSBC spokesman. 

Money available for existing borrowers

The credit crunch has not impacted HSBC as severely as it has many of its rivals in the UK banking sector.

A spokesman for HSBC explained that it would be able to draw on its own internal resources to finance greater mortgage lending, as it does not have to rely on wholesale financial markets, nor UK domestic savers, to provide it with the necessary funds.

“We believe we are the only UK bank that can do this,” he said.

If the bank lends all of the £15bn at an average of £100,000 per borrower, then that would amount to 150,000 home loans.

For more on mortgage lending and to access our mortgage calculator visit which.co.uk/advice/your-money.

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