£3 billion in HSBC mortgage funding set aside for first time buyers.

An HSBC mortgage funding announcement recently advised that the high street lender plans to loan £15 billion in mortgages during 2012.

In an effort to help first time buyers, HSBC have pledged to set aside £3 billion of the total £15 billion to support those struggling to climb onto the property ladder.

HSBC is well known for its premium prime residential lending, which includes a small share of the buy-to-let market. Therefore its allocation of around 20 per cent of 2012 lending for those struggling to climb on the housing ladder, appears to some like a departure from its core business. However HSBC have responded saying its mortgage strategy hasn’t changed.

Since the beginning of the credit crisis HSBC advise that its share of new mortgage lending has almost quadrupled. Last year HSBC's mortgage market share increased to 10 percent which compares favourably to the 2.5 per cent share it held five years ago.

If the bank's planned 2012 lending target is reached then those with an HSBC mortgage could form part of the proposed £15 billion lending figure, which represents an estimated 150,000 home-owners and 27,000 first-time buyers.

HSBC funds its mortgage lending through deposits and therefore rarely needs to use the more expensive wholesale funding market. With mortgage funding costs rising due to eurozone problems, HSBC are now well placed to offer cheaper rates than those lenders unable to rely on deposits.

The head of HSBC mortgage products recently commented on the market acknowledging the strengths of mortgage brokers like Deal Direct.

Being fully up to date on lenders changing mortgage criteria and rates Deal Direct are perfectly placed to source you a great deal. For the most competitive rates available on the market contact one of our skilled and impartial advisers today.