HSBC calls end of crash, increases 90% mortgage funding

HAMISH_MCTAVISH

Britain's biggest bank claims the housing crash is over and has promised to lend an extra £500 million to people applying for 90per cent home loans.

The pledge from HSBC is expected to end a two-year log-jam on this type of high loan to value mortgage.

The decision is seen as evidence that the UK's biggest mortgage lender is confident that house prices will not fall any further.

Rivals, such as the Lloyds group, which includes Halifax, are expected to respond by increasing the amount of mortgage lending and high value loans they offer.

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.'

http://www.dailymail.co.uk/news/article-1216904/Housing-crash-declares-HSBC-Britains-biggest-bank-offers-500m-90-loans.html#ixzz0SWtfIyQc

As predicted, more lending and increased competition at the 90% LTV levels, bang on time.

b0rker

Well if it is over and there are no more significant falls then they are playing the smart game by getting in first to take all those secure 90% LTV mortgages with nice fat interest rates/profits.

If there are further significant falls then not so smart.

I think the HSBC have proven themselves to be generally fairly smart in recent years however.

inspector_monkfish

HAMISH_MCTAVISH wrote: »

http://www.dailymail.co.uk/news/article-1216904/Housing-crash-declares-HSBC-Britains-biggest-bank-offers-500m-90-loans.html#ixzz0SWtfIyQc

As predicted, more lending and increased competition at the 90% LTV levels, bang on time.

with rates of 5.99% (2yrs) and 6.49% (5yrs)
whilst the base rate sits at 0.50%

wow, aren't they generous !!

HAMISH_MCTAVISH

b0rker wrote: »

I think the HSBC have proven themselves to be generally fairly smart in recent years however.

Yes they have.

And this is just the tip of the iceberg.

There is a vast pool of liquidity building up out there looking for returns.

A lot of big players will be watching this move very closely.

HAMISH_MCTAVISH

inspector_monkfish wrote: »

with rates of 5.99% (2yrs) and 6.49% (5yrs)
whilst the base rate sits at 0.50%

wow, aren't they generous !!

Not dissimilar to the rates available in mid/late 2007.

Vastly bigger bank margin though, and quite possibly a big enough margin to open the floodgates. At which point competition will return and margins will shrink.

Slowly slowly catchy monkey....;)

nearlynew

Never mind the house price.
How much can you borrow?

Roll up, roll up.
Come on debt-junkies, what are you waiting for?

b0rker

inspector_monkfish wrote: »

with rates of 5.99% (2yrs) and 6.49% (5yrs)
whilst the base rate sits at 0.50%

wow, aren't they generous !!

Sadly most people are not as financially astute as you.

In fact many people are not really financially astute at all.

But they know that they want a house. And they know that they don't want to have to wait and save a 25% deposit. And they know that they can afford the repayments at 5.99% on that 90% loan for the next 2 years.

What with there being lots of people (mortgage advisors, IFAs, HSBC advisors) with a vested interest in them buying a house then I think that HSBCs' lack of generosity will not be an issue.

b0rker

nearlynew wrote: »

Never mind the house price.
How much can you borrow?

Roll up, roll up.
Come on debt-junkies, what are you waiting for?

I apologise on behalf of all of the UKs potential first time buyers.

The fact that they have to borrow money to buy a house makes them worthy of your mocking.

Of course they should be able to buy a new house outright with no borrowing.

What debt junkie scum they are.

Imagine them not owning 2 houses like you. You are truly a king among men.

Gorgeous_George

I hope the crash gathers pace after the dead cat bounce.

I'd like my kids to be able to buy their own home while my ex wife sees the value of the house she couldn't afford to sell fall off a cliff.



GG

Pobby

Hamish, as a HPC veteran you will probably know Bruno. Sometimes your post remind me of him with all this banging on about house prices turning the corner again and soaring ever upward. Gets very tiresome.

Cleaver

nearlynew wrote: »

Come on debt-junkies, what are you waiting for?

Wouldn't the 'debt-junkie' rhetoric be best saved for people getting loans to buy plasmas, or something else along those lines? Using it for first time buyers getting a mortgage makes you look a touch like a sloganeer rather than someone who is capable of mature debate.

By the way, I already understand that you 'couldn't give a !!!!!!'.