High loan to value mortgages could be set to return after a show of confidence from Britain's largest bank . HSBC has pledged to lend an extra £500 million to homebuyers seeking 90 per cent mortgages, in a move that indicates the property market may finally be on the road to recovery. HSBC revealed that they have met their earlier target of lending £1 billion to customers needing 75 per cent or more of a property's value, and are now offering riskier products.
At the start of this month, there were just 101 90 per cent home loans available to homeowners, compared with 903 in July 2007. With little incentive for consumers to save in ISAs or savings accounts prior to the credit crunch, this has contributed to a decline in the property market as people are unable to obtain the necessary loans for house purchases.
Despite HSBC's confidence that house prices will not fall any further, City analysts have recently predicted the current revival in sales and property prices is a short term relief, and expect the market to dip once again next year.
Banks and building societies have been criticised for not doing enough to pass on the interest rate cuts from the Bank of England to consumers, and for failing to help stimulate the market.
Bank Shows Confidence in Property Market
Financial Services > e-banking > Banking news
Bank Shows Confidence in Property Market
Wed, 30 Sep 2009
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