HSBC mortgage pledge for first time buyer lending.
Back in January this year an HSBC mortgage pledge was announced advising that lending to the first time buyer sector would be increased to £3 billion.
HSBC advised that in total £15 billion would be lent to home-owners in 2012, and a fifth of this was to be allocated specifically to the first time buyer sector. By March HSBC announced that £1.2 billion in mortgages had been approved for first time property purchase.
By the end of June £10.6 billion in HSBC mortgages had been approved and of this figure, £2.7 billion had been approved for first time property purchase.
The head of HSBC mortgage lending commented saying that some lenders have chosen to reduce their lending levels in 2012, however HSBC continues to remain committed to increasing their mortgage lending to help more individuals to purchase a home.
HSBC has therefore decided to increases its mortgage pledge and is now allocating £17 billion for lending in 2012.
The £2 billion increase in HSBC mortgage lending will not be funded by the government's funding for lending scheme.
HSBC advises that it does not intend to take advantage of funding for lending, it will instead continue to fund mortgage lending through its retail deposits.
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