The number of brokers the bank was partnered with more than doubled over the year, rising from 277 to 640. This represented an increase of 363 firms with 717 companies now having access to HSBC mortgages.
Michelle Andrews (pictured), head of buying a home at HSBC, said the bank was still onboarding brokers and had already added 80 additional firms in 2022.
She said the bank reaffirmed its commitment to brokers in 2021, by extending the availability of its buy-to-let mortgages to broker networks, giving them access to these products for the first time.
“We have also added a revamped intermediary website, and with feedback from brokers we have worked to provide a modern, intuitive and responsive replacement, which includes an improved search function, new resources page and improved broker support page,” she said.
Lending spread
The average loan to value (LTV) of mortgages in 2021 fell to 67 per cent from 70 per cent in 2020. For first-time buyers, this dropped from 81 per cent in 2020 to 77 per cent last year.
Andrews said that while the average LTV for first-time buyers had lowered, the bank “proudly signed up to the government’s mortgage guarantee scheme.
“Alongside the stamp duty land tax relief, these initiatives helped keep the housing market moving.”
HSBC was one of the first lenders to sign up to the government’s mortgage guarantee scheme which nurtured a return to 95 per cent LTV lending following withdrawals in this part of the market.
Its first-time buyers bought properties with an average value of £275,000, which required average mortgages of £212,000. This was compared to an average purchase price of £240,000 in 2020 and an average mortgage loan of £194,000.
Andrews added: “Throughout the pandemic we have been there to support the housing market and those who want to get onto the property ladder, move up, or remortgage with us.”
For the year, HSBC reported a profit before tax of £1,023m up from 2020’s loss of £1,614m.
