HSBC injects more funding at 90% LTV

HSBC is making an additional £0.5bn of mortgage funding available to homebuyers with deposits of 10%.

The bank has now reached its £1bn lending commitment for 90% loan to value (LTV) which was set earlier this year.

Martijn van der Heijden, head of mortgages at HSBC, explains demand has been very strong at 90% LTV.

He says many people who were put off buying last year have started looking around again as house prices seemed to have bottomed.

"We committed £15bn to mortgage lending in 2009 - double our 2007 lending - and £1bn of this was made available exclusively to home buyers with deposits of just 10%," he says.

"While other lenders were in retreat, we became the UK's largest lender in the first half of 2009 on a net lending basis. Today we are reinforcing this commitment with a huge increase in the funds available for both first time buyers and home movers."