HSBC extends commitment to UK homeowners

As the Government launches new proposals to relax planning laws for homeowners wishing to improve their homes, HSBC reveals that it will make available at least £1billion of funding for home improvement loans in 2012.

2012 Lending Commitment

In January, HSBC confirmed it would be making £15 billion of mortgage funding available to UK homebuyers and homeowners in 2012, and the bank had already approved more than two thirds of this figure (£10.6 billion) by the end of June. The direct lender has extended the commitment with at least £17 billion available for UK borrowers.

Home Improvements

HSBC welcomes the Government plans to make home improvements an easier process and has this year already helped 17,300 homeowners release equity from their homes and will continue to offer attractive rates for those looking to improve their homes.

First Time Buyers

HSBC has continued to support first-time buyers by increasing its minimum allocation from £3 billion to £4 billion in mortgages this year and launching a number of innovative products. Four out of five first-time buyer applicants are approved for a HSBC mortgage and the bank had more best buy mentions for 90% LTV mortgages than any other lender in 2011. HSBC is currently offering first-time buyers record low mortgage rates coupled with no upfront fees to further offer them support onto the housing ladder.

New Build Property

Earlier this year HSBC raised the maximum loan to value on new build property to 85%, allowing those with a 15% deposit to apply for a mortgage against a new build property.

Peter Dockar, Head of Mortgages at HSBC, commented:  "At a time when many other lenders are contracting their lending, we remain committed to helping more customers who aspire to buy, move or improve their homes, demonstrated by the fact that we have approved a record number of mortgages so far this year.

"We offer a wide range of mortgage products designed to suit the needs of different types of borrowers and will continue to look at innovative solutions to help keep the property market moving."

HSBC is currently offering a number of market-leading mortgage rates for UK borrowers including:

Fee-free 2, 3, 5 and 7 year Fixed Rate Mortgage at 4.89% (90% LTV) for homebuyers

Fee-free Lifetime Tracker Mortgage at 3.99% over BR (90% LTV) for homebuyers

5 Year Fixed Rate mortgage at 3.29% with a £499 booking fee (60% LTV)

Lifetime Tracker Mortgage at 2.64% Lifetime Tracker (2.14% + BoE BR)-  (60% LTV)

Fee-free means:

No booking fee
No standard valuation fee
No completion fee

HSBC will cover the cost of one standard valuation where this is required by HSBC as part of the mortgage application.  Additionally, where it is a straight forward transfer from another lender, HSBC also pays the standard legal costs.

For more information, visit hsbc.co.uk.