HSBC increased its share of the mortgage market by only 3% in the first six months of this year.
Last week the bank revealed pre-tax profits of £;7bn – up from £;3.1bn in the previous six months.
Its total mortgage lending in the UK rose by 3% from December 31 2009 to some £;60bn.
In its financial results statement the bank says growth was constrained by a decline in remortgaging activity as many home owners on low SVR deals have a strong incentive to stay with their existing providers.
HSBC’s UK mortgage portfolio primarily consists of lending to owner-occupiers.
Almost all new business was to customers holding current or savings accounts with HSBC, which it says strengthens its underwriting process.
Loan impairment charges and delinquencies in its mortgage book declined in the first half of the year.
In the HSBC bank mortgage portfolio – excluding First Direct – the delinquency rate of two months or more fell from 1.4% on December 31 2009 to 1.3% on June 30 this year.
Last week HSBC launched a tracker mortgage which tracks at 1.69% above the Bank of England base rate, making the deal 2.19% currently. It comes with a booking fee of £;99.
The rate is available until August 15 to customers who have at least 40% equity in their homes.
The bank has also unveiled its lowest ever long-term fixed rate mortgage – a five-year deal at 3.95% which is available up to 60% LTV and has a booking fee of £;599.
HSBC says that it accepts around 80% of customers who apply for mortgages.
Martijn van der Heijden, head of mortgages at HSBC, says: “Our new deals offer the best of both worlds – a low five-year fixed rate for customers wanting security and a competitive tracker for those who prefer flexibility.”