HSBC aims to grow the number of mortgages that it provides. They have £15 billion available to lend during 2012 and that should give them 11% of the market.
First time borrowers will also benefit from this new found enthusiasm for lending by HSBC if their marketing blurb is to be believed. 90% mortgages for first time buyers will again be on offer and £3bn has been earmarked for such buyers out of the £15bn mentioned above.
“While some estimates suggest mortgage lending in the UK will fall this year, HSBC has no intention of closing its doors to customers, nor will we compromise our reputation for responsible lending.” according to the HSBC spokes person. (Marketing speak not substance? ed.)
Should HSBC achieve their lending target it will still mean 9 out of 10 mortgages will be provided by someone else. As mortgage lenders rebuild their confidence and balance sheets the offerings will get broader and more competitive. It will still pay to shop around for an appropriate deal.
Current Market Trends
There has been a welcome rise in lending at the end of 2011 and the council of mortgage lenders (CML) are expecting a further rise in the number of first time borrowers over the next few months. The comparative figures for the first quarter of 2011 were low. The stamp duty concessions which are due to end in March 2012 are encouraging buyers to take advantage.
The CML forecasts are on the gloomy side due to ‘The weak state of the wider economy and household finances. While an estimated 852,000 transactions are likely to have taken place in 2011, the CML anticipates fewer transactions next year with a central forecast of 825,000.’
House purchase lending in November 2011 experienced a year-on-year rise for only the second time in 2011, according to the Council of Mortgage Lenders. Loans for house purchase totalled 47,000 in November, a 4% rise (5% in value) from October and a 3% rise (5% in value) compared to November 2010. Remortgaging also increased.
Apocryphally the number of concluded sales seems to have been high judging by the visual effect amongst the housing for sale. Long term for sale signs now have sold on them and chains may be linking up at last. We are positive about the number of transactions but less convinced about the price at which deals will be concluded.
Note on CML
The Council of Mortgage Lenders’ members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.
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