HSBC to increase mortgage lending by a fifth next year

Commenting on HSBC announcing it is to increase its mortgage lending by a fifth next year, Louise Cuming, head of mortgages at moneysupermarket.com, said: "It is great to see HSBC setting the standard in trying to kickstart the mortgage market by committing to increase its lending next year. With HSBC also announcing a £1 billion working capital fund for small and medium-sized businesses, and passing on the full base rate cut last week, the bank is setting a great example to others.

"But while HSBC has committed to lending up to £15 billion in new mortgages, this is really a drop in the ocean when you consider the total new mortgage market should be worth well over £200 billion in 2009. This move should be seen as a benchmark for the UK's seven bigger lenders to follow.

"What needs to be top of every bank's agenda is a commitment to helping a variety of borrowers. Until now, the only winners have been those with a large equity stake in their home or a sizeable deposit. Real changes need to be made to help first-time buyers trying to get on the property ladder and those who aren't lucky enough to have huge deposits."