HSBC Holdings has revealed that it will increase lending to UK homeowners by 18% in 2009. This will be a welcomed announcement by the Government who are putting banks under pressure to boost lending.

HSBC have £15 billion in the pot to lend to UK mortgage seekers in 2009, this is up on the £12.8 billion it leant this year.

Most are forecasting a decrease in mortgage lending in 2009 but Paul Thurston HSBC’s UK managing director is looking to buck the trend. The banks are under increasing pressure to increase lending to stimulate the market. If other banks follow suit and open up their doors to borrowers then the recession may not last as long.

Without the banks’ lending to individuals the housing market cannot return to a healthy position. Interest rate cuts alone will not save the economy the banks need to help first-time buyers onto the ladder to pull us out of this recession as quickly as possible.

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