HSBC Targets UK Mortgages

When all around them are pulling the plug on fixed rate deals, HSBC unveiled a plan to grab a a large slice of the UK's mortgage market yesterday, exploiting rivals' weakness in the global credit squeeze and offering some respite to homeowners.

Europe's biggest bank, which has just 3 percent of the UK mortgage market, is targeting some of the 1.4 million customers who come off cheap fixed-rate deals this year to face sharp rises in mortgage costs.

Speaking to the FT Joe Garner, UK personal finances head at HSBC , said "we're in an incredibly strong position while others are stepping back...We remain competitive and are selective about the right sort of business."

The Council of Mortgage Lenders estimates about 1.4 million home loans in the U.K. will reset this year, forcing borrowers to shift to variable rates, which averaged 6.5 percent in February. HSBC will extend loans with fixed rates as low as 4.54 percent.