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Hsbc To Offer 90%

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What does this mean for NI?

Its from the Daily Mail by the way

http://www.dailymail.co.uk/news/article-12...l#ixzz0SWtfIyQc

Britain's biggest bank claims the housing crash is over and has promised to lend an extra £500 million to people applying for 90per cent home loans.

The pledge from HSBC is expected to end a two-year log-jam on this type of high loan to value mortgage.

The decision is seen as evidence that the UK's biggest mortgage lender is confident that house prices will not fall any further.

Rivals, such as the Lloyds group, which includes Halifax, are expected to respond by increasing the amount of mortgage lending and high value loans they offer.

Head of mortgages at the bank, Martijn van der Heijden, said there is a new optimism among buyers that house prices will not fall any further.

He said: 'We committed £15 billion to mortgage lending in 2009 – double our 2007 lending – and £1bn of this was made available exclusively to home buyers with deposits of just 10per cent.

'Demand has been very strong and we have reached this target, so we are now committing another £500 million to this vital segment of the market

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What does this mean for NI?

Its from the Daily Mail by the way

http://www.dailymail.co.uk/news/article-12...l#ixzz0SWtfIyQc

Britain's biggest bank claims the housing crash is over and has promised to lend an extra £500 million to people applying for 90per cent home loans.

The pledge from HSBC is expected to end a two-year log-jam on this type of high loan to value mortgage.

The decision is seen as evidence that the UK's biggest mortgage lender is confident that house prices will not fall any further.

Rivals, such as the Lloyds group, which includes Halifax, are expected to respond by increasing the amount of mortgage lending and high value loans they offer.

Head of mortgages at the bank, Martijn van der Heijden, said there is a new optimism among buyers that house prices will not fall any further.

He said: 'We committed £15 billion to mortgage lending in 2009 – double our 2007 lending – and £1bn of this was made available exclusively to home buyers with deposits of just 10per cent.

'Demand has been very strong and we have reached this target, so we are now committing another £500 million to this vital segment of the market

We will just have to wait until we see exactly what they are offering. There are already 90% mortgages out there but you the rates are very high.

If they are hoping to provide most of their mortgages in this bracket then it shows that they believe a cushion of 10% is more than adequate.

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http://www.dailymail.co.uk/news/article-12...l#ixzz0SWtfIyQc

.. promised to lend an extra £500 million to people applying for 90per cent home loans.

Just more of the same - steroids into the market to keep house prices artificially inflated, and part of the 'targets' set for banks to 'lend more' as part of the publicly funded bail-out. Mortgage approvals dipping, net loans falling and while banks may want to set LTV at no more than 80%, this provides them with a small ('sucker') market of potential buyers paying 10x to 12x base rate at least.. not a bad 'earner'...

Edit to add:

Belfast VI - clearly the intention is not to set this as a 'standard' for general lending leading to the assumption they believe market has only 10% to fall - as reported "We committed £15 billion to mortgage lending in 2009 ...and £1bn of this was made available exclusively to home buyers with deposits of just 10per cent" - I read this as if they provide less than 7% to buyers with 10% deposits, and overall lend £15bn - Hey presto... big bonuses please :blink:

Edited by kenzoil

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If they are hoping to provide most of their mortgages in this bracket then it shows that they believe a cushion of 10% is more than adequate.

We should know by now that whatever crystal ball the banks use to predict house price changes is broken. They were lending away without a care in the world as prices overshot by 25% in the UK (and overshot by 60% here!)

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Its all part of a concerted plan by the banks and government to maintain asset prices, using any means necessary - massive bailouts, media manipulation, quantitative easing, near zero interest rates.

It doesn't matter anymore if banks fail - the stigma has been broken, they'll be bailed out with our increasingly worthless currency.

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