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HSBC boosts homes lending - Times

HSBC said last week that it would boost lending to homebuyers with deposits of 10% in a show of confidence in the housing market.

Martijn van der Heijden, the head of mortgages, pledged £500m in funding by the end of the year for first-time buyers and those looking to move home with deposits of just 10%.

“Demand has been very strong ... houses prices seem to have bottomed and rates are low,” he said.

The news came as figures from Nationwide showed house prices had recovered to their level a year ago. However, while HSBC will lend between three and four times’ salary, those who have significant credit card debt are likely to be offered much less. Someone with an income of £50,000 could be restricted to borrowing only £125,000, HSBC conceded.