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HSBC ups broker share to 41% of mortgage lending

  • 03/05/2019
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HSBC ups broker share to 41% of mortgage lending
HSBC continued to grow its intermediary distribution as the bank completed £4bn of mortgage lending in the first quarter of 2019.


The lender saw 41 per cent of its business completed through advisers between January and March, up from 35 per cent in the whole of 2018.

The lender also increased distribution to 85 per cent of the adviser market.

Its £4bn Q1 lending total includes loans through First Direct, M&S Bank and John Lewis Financial Services, and its overall residential UK mortgage book was worth £93.7bn.

The bank’s UK net interest margin remained unchanged on the end of 2018 at 2.21 per cent, suggesting it had not been forced to cut rates to gain market share.

HSBC completed £9bn of mortgage lending in the first half of 2018 and £22bn by the end of last year.

In March the lender announced it was making product switching available to brokers with a 0.2 per cent proc fee paid on completion.

Around £3.2bn of HSBC’s mortgages are on a standard variable rate, the results showed.


Mortgage balances up £1.1bn

In its first quarter report, HSBC said its retail banking mortgage balances had grown around £1.1bn ($1.5bn) from the same period last year.

Interest-only mortgages totalled £19.5bn and buy-to-let mortgages were worth £2.8bn of the £93.7bn book.

The average loan to value (LTV) of the total portfolio was 51 per cent, with roughly half of the book on less than 50 per cent LTV and new originations averaging 66 per cent LTV.

HSBC added that it had increased lending to UK corporate clients mainly through term lending.


Encouraging results

Overall the global bank reported profit after tax up 31 per cent to $4.9bn, approximately £3.76bn, over the three months.

The group’s global net interest margin was 1.59 per cent, seven basis points lower compared with the year ended 2018.

HSBC group chief executive John Flint said the bank had made a good start to 2019.

“Our three main global businesses performed well,” he said.

“Retail banking and wealth management generated a significant increase in adjusted revenue on the back of higher lending and deposit balances, notably in the UK and Hong Kong, and from positive market impacts in insurance manufacturing.”

Flint added: “These are an encouraging set of results, particularly in the context of heightened economic uncertainty globally.

“We remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy.”


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