ClickAJob News

HSBC has pledged to increase its mortgage lending in 2009 by 20 per cent.

The move from the bank comes despite widespread predictions of further house price falls next year and an increase in repossessions.

For 2009, HSBC will raise a £15 billion fund, compared to £12.8 billion in 2008 and £7.8 billion in 2007.

This increase in mortgage lending comes although mortgage lending across the industry will drop.

Paul Thurston, HSBC UK managing director, said: "By some estimates, net mortgage lending in the UK will fall next year.

"But HSBC has no intention of closing its doors to customers, nor will we compromise our reputation for responsible lending. We remain open for business to the tune of £15 billion."

The lender is also pledging not to start repossession orders until a borrower is six months in arrears – although the number of its mortgage customers falling behind on their repayments is half the industry average.

HSBC is responsible for 1.5 per cent of all UK repossessions this year.

On Sunday, HSBC announced plans to increase business lending over 2009 with the establishment of a $5 billion (£3.4 billion) global fund to lend money to small and medium-sized businesses.

The bank is being seen as using the slowdown in the economy and lending to boost its position in the UK market – where in areas such as mortgages it is still a small player.