HSBC pledges more low-deposit mortgage lending

HSBC has unveiled plans to increase its mortgage lending to customers at 90 per cent loan-value levels or higher.

The bank has said it has already hit its £1 billion target for homebuyer loans with deposits of ten per cent or less and now intends to increase its 2009 quotient to £1.5 billion.

Such a move could boost those looking for a mortgage and may prompt other banks to increase their lending as the housing market gradually recovers.

“Demand has been very strong and we have reached this target, so we are now committing another £500 million to this vital segment of the market,” said head of mortgages at the bank Martin Van Heijden.

The level of mortgages agreed in August was almost identical to that in July, according to figures from the Bank of England.

It recorded 52,317 homebuyer loans being agreed during the month, just 87 down on the previous month and still up on the figures for June and the six-month average.

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