HSBC Receive Record Home Loan Enquiries

Mon, 07 Sep 2009

HSBC has received record numbers of mortgage enquiries since it launched its 1.99 per cent loan last week. Last Thursday was the busiest every day for the banks home loan department as they aim to improve its market share with this attractive deal. Rival lenders fear they will not be able to compete with such a low interest rate, leaving HSBC in a dominant position to attract the safest borrowers. The new fixed rate deal is only on offer to those with deposits or equity in their home worth 40 per cent or more, minimising the risk for the bank . Analysts have said this tactic could prove an extremely shrewd move by HSBC, enabling them to build up an extremely low risk mortgage portfolio.

HSBC’s share of the mortgage market has already risen sharply, having reported gross mortgage lending of £6.7 billion in the first half of 2009 – representing 10 per cent of all UK mortgage lending. Meanwhile, the banks net lending hit £4.2 billion – the highest of any UK banking group.

This growth follows a series of rate matching offers, targeting borrowers coming to the end of low interest fixed rate loan deals. That offer proved a huge success, resulting in the bank selling £120 million of mortgages every week.
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