HSBC head of lending Martijn van der Heijden
In a sign that the mortgage market is beginning to show signs of easing, HSBC has announced it will lend at least £15 billion to UK borrowers in 2012, at least £3 billion of which will be to first-time buyers.
The Council of Mortgage Lenders (CML) has predicted that the mortgage market will shrink in 2012, but HSBC is aiming to boost its market share to 11 per cent, the largest market share the bank has ever had. It estimates it will lend to 150,000 homeowners and more than 27,000 first-time buyers.
In the first half of 2011, HSBC lent a total £6.7 billion in residential mortgages, 35 per cent more than a year previously.
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.”