Lenders support government loan scheme - commercial mortgages

16 January 2009

HSBC has welcomed the arrival of the Working Capital Guarantee Scheme from the government, news which may interest holders of commercial mortgages.

Paul Thurston, managing director of UK banking at the lender, described the government's capital scheme as a "valuable step", but noted that HSBC is also continuing to help small-to-medium sized enterprises (SMEs) through its lending packages, which it is able to offer due to its capital strength.

"HSBC has very much remained open for business through this credit crunch, announcing our own new $5 billion (£3.35 billion) global SME fund last year, with £1 billion earmarked for UK business," he said.

Mr Thurston added that HSBC has also pledged £15 million to UK mortgage customers.

Aimed at supporting SMEs, the government's initiative will mean an extra £20 billion of short-term lending is now available.

It was unveiled by business secretary Peter Mandelson earlier this week, when he described UK firms as the "lifeblood of the economy".