HSBC pledges £15 billion to UK Mortgage borrowers in 2009

HSBC will lend up to 15 billion sterling pounds in mortgages to UK homeowners in 2009, 20 per cent more than in 2008 and almost double what the world's local bank lent in 2007.

This follows HSBC's announcement that it has committed an extra $5 billion to its small business customers around the world, including one billion sterling pounds dedicated to UK enterprises.

The world's local bank, which has not needed recapitalisation by government, remains very much open for business without compromising its lending standards or over-exposing its business or mortgage customers.

HSBC passed on the full benefit of the recent one per cent base rate cut to retail and business customers and continues to work with government to support customers facing mortgage repayment difficulties. The bank also offers the UK's leading Base Rate Tracker mortgage and enabled borrowers in 2008 to switch to HSBC and freeze their repayments through its Rate Matcher product.

The bank's 2009 15 billion sterling pound mortgage fund will be subject to HSBC's normal credit criteria and lending process to ensure that new lending is appropriate and sustainable for the bank and the customer.

HSBC's UK managing director Paul Thurston said, "By some estimates, net mortgage lending in the UK will fall next year, but HSBC has no intention of closing its doors to customers, nor will we compromise our reputation for responsible lending.

We remain open for business to the tune of 15 billion sterling pounds."

HSBC lent 7.8 billion sterling pounds in UK mortgages in 2007 and 12.8 billion sterling pounds, a 60 per cent increase, this year. The bank is a top-five UK mortgage lender, with some 15 per cent of net new lending in 2008.