HSBC to increase mortgage lending

Paul Thurston, HSBC’s UK managing director announced that the bank will increase its lending in 2009 and hopes to reach £15bn in mortgages which is a 20 percent increase from this year even though the lack of mortgage availability is a large reason for the current slump in the property market.

Halifax revealed that the house price index had fallen by 2.6 percent last month which represents the biggest ever monthly fall in a period where UK banks approved just 32,000 mortgages which is a third less than in 1999.

The increase in mortgage lending came as the bank also announced a $5bn fund to increase lending to small and medium-sized businesses.

There has been increased pressure from the government and from consumers for UK banks to increase their lending since the government’s bailout, even though it did not include HSBC.

Peter Mandelson the Business Secretary met with senior bankers today in a bid to help save the car manufacturing industry which is struggling to survive in the current climate of reduced demand.

Michael Geoghegan, the HSBC chief executive said that the current time is very challenging for businesses and consumers and so they have ever right to see how banks can actually help

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