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HSBC sees mortgage sales up 200%

Full-year results from HSBC reveal that its Rate Matcher campaign pushed up mortgage sales by 200%, with total new mortgage sales hitt-ing £17.1bn.

New mortgage sales for the banking giant shot up dramatically from £9.1bn in 2007. It claims that it wrote more than £100m in mortgages every day during last April alone.

The lender’s total gross market share is now 7% – up from 2.4% the previous year.

HSBC’s mortgage book grew by 25% to £50.5bn at the end of 2008, compared with £40.4bn at the same time a year earlier.

Joe Garner, group general manager of HSBC Personal Financial Services, says: “Although 2008 was a difficult year for the overall mortgage market with the choice of loans on offer to consumers diminishing month-on-month, we con-tinued to innovate and stay open for business.”

HSBC has reaffirmed its pledge to boost its mortgage funding by 20% to £15bn this year.

Garner adds: “Our strategy of not chasing market share at any price in previous years, together with our traditional approach of funding mortgages with retail deposits, has placed us on a firm footing.

“In 2009 we will continue to lend on this responsible basis and have made available £15bn for new mortgage funding – double what we lent in 2007.”

Ray Boulger, senior technical manager at John Charcol, says: “HSBC is competing strongly in the 60% LTV market although its rates are not market-leading. It seems to be mainly targeting the low LTV end of the market and doing it pretty well.”

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