January 19, 2012 10:39 ET

HSBC to Lend at Least GBP 15 Billion to UK Mortgage Borrowers in 2012

LONDON, UNITED KINGDOM--(Marketwire - Jan. 19, 2012) - HSBC today announces that during 2012 it will make available at least £15 billion in mortgages[Tl1] to UK homeowners, including £3 billion specifically set aside for first time buyers. With the UK mortgage market expected to shrink in 2012 according to the CML, this commitment by HSBC represents a market share of over 11%, inline with the largest market share the bank has ever had.

In the first half of 2011, HSBC lent a total £6.7 billion in residential mortgages, 35% more than a year previously.

Of the £15 billion HSBC will be making available for 2012, the majority will be new money into the mortgage market, effectively making the bank one of the largest providers of new mortgage funding in the UK. This commitment will help in the region of 150,000 homeowners and over 27,000 first time buyers.

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 £3 billion 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."

The bank's 2012 £15 billion mortgage fund will be subject to HSBC's normal credit criteria and lending process to ensure that new lending is appropriate and in the best long-term interests of its customers and shareholders.

About HSBC Mortgages

  • HSBC was recently recognised as Best Mortgage Provider of 2011 by The award reflects product range and popularity in 2011, appearances in national press best buy tables, product innovation and customer service.
  • In 2011 HSBC was also voted the Best Bank Mortgage Provider and Best High Street Mortgage Provider by Moneyfacts
  • HSBC appeared in more mortgage Best Buy Tables than any other provider in 2009 and 2010, with 2011 expected to show similar results
  • More than one in four loans granted by HSBC in the first half of 2011 was to first-time buyers - making HSBC the largest Direct provider of FTB funding in the UK
  • HSBC charges no mortgage exit fees

HSBC is currently offering a number of market-leading mortgage products including:

  • A range of fee-free lifetime tracker products starting from a rate of 2.49% for those with a 35% deposit in the January sale
  • The only sub-4% rate for FTBs with a 10% deposit - just 3.84% on a 2 year discount mortgage with no fee to pay

[Tl1]Hyperlink to:

Note to Editors

*CML forecasts £133 billion gross mortgage lending in 2012, HSBC's £15 billion represents 11.3% of this figure

HSBC mortgages are only available directly from HSBC - they are not available from brokers or any other intermediaries.

For the latest updates, visit the UK Press Office social media newsroom:

HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 52,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.

The HSBC Group: HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,500 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,691bn at 30 June 2011, HSBC is one of the world's largest banking and financial services organisations.

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