UK bank HSBC has declared that the housing crash is over and promised to lend £500million to potential buyers applying for a 90% mortgage.
The announcement from HSBC came with accusations that other UK banks and building societies are not doing enough to open up mortgage finance. The HSBC said, “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.”
Head of mortgages at the bank, Martijn van der Heijden, said there is a new optimism among buyers that house prices will not fall any further. He 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 10per cent. 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.”
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