Dealing direct boosting business, says HSBC
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HSBC has attributed its growth in the UK mortgage market to limited exposure to the buy-to-let market and brokered mortgages.
In the bank’s interim management statement issued this morning, HSBS says: “In the UK, although unemployment rose and the economy contracted, the impact was moderated by continuing low interest rates and quantitative easing measures, together with decisions implemented in 2006 and 2007 to restrict growth in unsecured lending.
“Mortgage lending continued to perform well, benefiting from our very limited exposure to buy-to-let and brokered mortgages.”
HSBC increased its share of the UK mortgage market to 9.9% in Q3, up from a 9.5% share of new mortgages in June and 4.5% in June 2008.
The bank says it is on track to meet its £15bn lending pledge for new mortgages in 2009, double the amount of lending advanced by the bank in 2007.
The average LTV of new business for the year to date has stayed below 60%.
Michael Geoghegan, group chief executive of HSBC, has also warned that the regulator should tread carefully in telling banks to hold more capital before the ecomony has had a chance to properly recover.
He says: “Regulatory policy needs to be sensitive to fragile economic conditions.
“If capital ratios are increased before Western economies have had the chance to stabilise, this could trigger a number of unintended consequences.
“These include a rise in the cost and a fall in the availability of credit, which would undermine the ability of the banking industry to play its full part in supporting economic recovery.
“It may also encourage regulatory arbitrage and the emergence of a shadow banking system, beyond the reach of regulation.”
Geoghegan says that emerging markets represent “the brightest prospects for growth,” given that the rate of unemployment is still rising in Western economies.
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Readers' comments (8)
Ian Mason | 10 Nov 2009 10:31 am
HSBC are at it again. What is the significance of no broker involvement? the chance to sell all the add ons such as life/ critical illness, B&C at their non competitive rates. I once dealt with a client who had been to HSBC who had quoted them £53 per mth LIfe and CIC on a reviewable basis. I was able to get them a policy each on guaranteed premiums for £38 per month. This was much better for the client and needless to say I got the mortgage as well. Its not all in the headlines its in the detail and the banks are crap at this
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Bill Wells | 10 Nov 2009 11:02 am
HSBC has always excluded IFAs from selling their mortgage products because they know that all their 'add-ons' are over-priced, under-specified garbage.
So how is the FSA helping to ensure more people can access quality INDEPENDENT advice ? Answers on a post card to cloud cuckoo land.
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Marcus | 10 Nov 2009 11:10 am
Mr HSBC, if you are going to stick 2 fingers up at us, well we sre going stick all our fingers back at you too!!
Have that!!
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Carwyn Evans | 10 Nov 2009 11:15 am
Guys, stop moaning and get on with it! This means nothing to your clients. Do what you do best and keep giving best advice and saving money to your client.
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Tim Burrows | 10 Nov 2009 11:48 am
Having recommended an HSBC deal to a client as it was the most suitable deal at the time, my client is now being leaned on heavily to sign up life/critical illness at uncompetitive premiums. He was duped into seeimg their Life Assurance representative on the pretext they were calling round to complete the mortgage formalities.
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Stuart Duncan | 10 Nov 2009 11:59 am
I had a similar experience when I recommended an Abbey direct deal in the summer, when they tried to trick the client into taking out expensive protection.
What annoys me is them almost boasting that their average LTV is below 60%, which is easy to achieve when they are turning down most applications above 70%.
I agree with Carwyn and still think they are a bit-part players cherry-picking at the edges, but the real damage is in encouragin other players to dual price to compete direct.
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Calvin Oram | 10 Nov 2009 12:03 pm
Hooray for HSBC! Have you seen the "Trauma Cover"? It covers 5 critical illnesses and I have found it to be at least 1/3rd more than the best in the open market. Just think as the HSBC advisor as the "Warm Up Man"
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Matthew Platt | 10 Nov 2009 12:09 pm
What signifigance at all does "no broker involvement" have to HSBC experiencing growth to their market share?
Surely if they indulged in broker deals their market share would be even higher??? Am I missing something here?
And also, if we brokers are as bad as they'd have us believe then why do they recommend the poor souls who don't meet their archaic underwriting criteria to Charcol brokers - who charge them a fee!
This ever increasing trend of blaming brokers for th current mess is starting to really annoy me.
I can't wait until it's over and the BDM's from RBS and Lloyds are clamouring for an appointment with me, we brokers have long memories!!!
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