First-time buyer lending pledge hailed

First-time buyers are likely to be boosted by one bank’s pledge to make more funding available, an expert has noted.

Helen Adams, managing director at FirstRungNow.com, welcomed HSBC’s commitment to set aside £1 billion for mortgages taken out by this group in 2009.

In addition, the bank is planning to make mortgages of 90 per cent loan-value available, a move Ms Adams suggested could be followed by other lenders.

“Not long ago first-time buyers were having to come up with between 25 per cent and 30 per cent of the deposit, which was unrealistic for them,” she remarked.

Describing HSBC as having “led the way”, Ms Adams added that the bank is likely to expect others to take similar action.

HSBC revealed that it is planning to provide a total of £15 billion for new mortgages over the course of this year, a level twice that allocated for this purpose in 2007.

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