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. The new loans will not be available to those remortgaging.
Martijn van der Heijden, head of mortgages at HSBC, said: "We committed £15 billion to mortgage lending in 2009 - double our 2007 lending - and £1 billion 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,” he said. “House 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.”
