HSBC injects £500m available for mortgage funding

Today HSBC is making an additional half a billion pounds of mortgage funding available to home buyers with deposits of just 10%. The bank has now reached the £1 billion it committed to lending earlier this year, meaning HSBC will now make £1.5 billion available to home buyers requiring 90% loan to value in 2009.

Martijn van der Heijden, head of mortgages at HSBC, said: "We committed £15 billion to mortgage lending in 2009 - double our 2007 lending - and £1bn of this was made available exclusively to home buyers with deposits of just 10%. 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."

Mr van der Heijden said research conducted in August last year into British home buying intentions found that 10% of Britons were keen to move house or get on the property ladder, but had decided to hold off for at least six months. 37% said they did not want to buy while prices were falling, while 36% were concerned about the rising cost of living.

"It is a different picture today - houses prices seem to have bottomed and rates are low - and many of those who put off their purchase last year are starting to look around again.

"HSBC has been out there throughout the recession, staying open for business for our customers. While other lenders were in retreat, we became the UK's largest lender in the first half of 2009 on a net lending basis. Today we are reinforcing this commitment with a huge increase in the funds available for both first time buyers and home movers."