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First-Time Buyers Receive Loan Boost From HSBC

Wed, 30 Sep 2009
Homebuyers in the UK have been boosted by the news that HSBC is to make £500 million available to those with deposits of just 10 per cent.

The lender is allowing people to borrow up to 90 per cent of their property's value in a move that will be of particular benefit to first time buyers around the country.

The funding is in addition to the £1 billion that HSBC had already promised to loan to improve conditions for homebuyers who can only raise a 10 per cent deposit, making the banking giant the UK’s largest lender in the first half of 2009.

Martijn van der Heijden, head of mortgages at HSBC, explained that extra funding has been made available in order to keep up with the strong demand for its loan to value (LTV) mortgage deals .

He said: "It is a different picture today - house 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."

"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," he added.

"Demand has been very strong and we have reached this target, so we are now committing another £500m to this vital segment of the market."

"Today we are reinforcing this commitment with a huge increase in the funds available for both first time buyers and home movers."

The announcement from HSBC came as new Bank of England figures revealed that mortgage approvals fell in August for the first time in 10 months.
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