Major bank will pump £15 billion into Home Loans

IveSeenTheLight

http://www.pressandjournal.co.uk/Article.aspx/976326

HSBC promises to increase mortgage lending in 2009
The major bank will pump £15bn into home loans

A leading bank is today pumping billions of pounds into the economy to boost the beleaguered mortgage market.
HSBC will lend up to £15billion in mortgages in 2009, a fifth more than this year and almost double the level seen in 2007.
The news comes as a boost for Gordon Brown who has chastised banks for not lending to get the economy moving again

It also came as the Scottish Government announced two new initiatives. Ministers will provide an extra £5million to help homeowners facing repossessions - and more small businesses are to be offered interest-free loans of up to £100,000 to cut fuel bills.

HSBC's announcement contrasts with forecasts that frozen money markets and the housing slump will result in mortgage repayments and redemptions outstripping loans next year.

Paul Thurston, HSBC's UK managing director, 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 £15billion."

HSBC, which did not take up the UK Government's bank bailout funding, passed on the full benefit of last week's 1% rate cut by the Bank of England to retail and business customers.

And yesterday, HSBC also announced it was making £1billion of extra funding available to help small firms survive the recession - as a survey by the Federation of Small Businesses said around a third of its members were still struggling to get affordable credit from banks.

Gordon Wilson, of financial advisers Thomson Shepherd, who have offices in Aberdeen, Inverness and Perth, said: "I think this is a big positive that there are banks out there prepared to lend. I would like to think it shows a bit of a loosening in the economy and that more money will become available."

Meanwhile, First Minister Alex Salmond said the next few months would be an "enormous challenge".

He told the SNP's national council meeting in Perth on Saturday: "The economic storm clouds are gathering. But I know that we will weather this storm - and emerge even stronger, and well placed to prosper."

Scottish Communities Minister Stewart Maxwell is today announcing an extra £5million to help the existing mortgage-to-rent scheme which helps families at risk of losing their homes.

The news, which will take the investment in the scheme to £15million, allows councils or housing associations to buy the homes of those facing repossession, allowing the owners to stay as tenants.

Enterprise Minister Jim Mather announced more firms would now be eligible for the energy-saving small business loans scheme to help cut their energy bills

From today, private landlords, agriculture and transport businesses will be able to join manufacturing and catering firms in getting interest-free loans from £1,000 to £100,000 for energy efficient measures or for the installation of small-scale renewables such as solar panels or ground-source heating.

John Blackwood, director of the Scottish Association of Landlords, said: "Landlords are always looking for ways to improve their properties and access to interest-free loans for energy efficiency will give tenants a warmer home and cheaper fuel bills."

However, Gordon Mowat of Aspire Management Services, said it would not help firms to sell more goods or grow in the short term, so it was not a priority for them.
"What needs to be done to help businesses in the short term is getting banks to lower their interest rates," he said.

Really2

HSBC Also have made £1Billion available to small business.
Me thinks HSBC will make a killing during the times other banks are struggling.

SingleSue

One question....where is all the money coming from?

IveSeenTheLight

HSBC will lend up to £15billion in mortgages in 2009, a fifth more than this year and almost double the level seen in 2007.

HSBC will double the amount of mortgages lent in 2007.

This could indicate a brighter 2009 than some people are predicting.

Really2

SingleSue wrote: »

One question....where is all the money coming from?

They have it HSBC are the strongest positioned bank.

IveSeenTheLight

SingleSue wrote: »

One question....where is all the money coming from?

HSBC did not take up the government bail out offer.
It's possible their accounts are far better than the other banks

In bad times, there are always businesses willing and able to increase their market share.
It's arguably the best time to do so.

SingleSue

Ok thanks......just wondered that is all.

Deadman_2

What sort of person would actually buy next year?

The most misguided. Good luck to them, they'll need it.

abaxas

Total secured lending = £1,220bn
HBSC lending = £15bn

15/1220 *100 = 1.23% of the marketplace.

Spin, spin spin spin.

JonnyBravo

"HSBC will lend up to £15billion in mortgages in 2009, a fifth more than this year and almost double the level seen in 2007."

And therein lies the rub.

Will lend upto £15b.

No promise of actually lending that amount.

People are less able to fill the, arguably now more sensible, criteria laid out to get their hands on the money.
Deposits now need to be of a more sensible size.
How many people have saved deposits over the last few years? Far fewer than used to when these criteria were last the dominant force. (late 90's?)

I'll bet they don't lend £15b but of course they get to keep Gordon quiet by saying they are prepared to.
(HSBC haven't taken any of our money of course and should be able to do as they please anyhow.)

Really2

abaxas wrote: »

Total secured lending = £1,220bn
HBSC lending = £15bn

15/1220 *100 = 1.23% of the marketplace.

Spin, spin spin spin.

What so you take the total of all lending to work that out.

The propor way to do it would be to take out the total lent out this year and find out what % age of this years lending that is.