Net mortgage advances climb £6.4 billion as bank grows share of home loans market
HSBC UK recorded solid mortgage lending growth in 2025, with net mortgage advances increasing by £6.4 billion and its retail mortgage market share rising to 8.1%.
According to the group’s annual results, customer loans and advances at HSBC UK rose by 6% to £231.2 billion, supported mainly by expansion in home loans and commercial borrowing.
The bank said it continued to have a significant footprint in the UK mortgage sector and had strengthened affordability checks and credit policies where it considered this necessary. It reported that the quality of its mortgage portfolio “remained strong”, with impairment allowances at low levels. For new lending, the average loan-to-value (LTV) stood at 69%, while the mortgage book as a whole had an average LTV of 55%.
HSBC Group said it saw further scope to expand its UK mortgage business and to grow its position in small and medium-sized enterprise (SME) banking.
Total revenue at HSBC UK rose by 5% or £489 million to £10.5 billion, driven largely by higher net interest income. The bank’s net interest margin increased from 2.56% in 2024 to 2.63% in 2025.
Profit at HSBC UK was broadly unchanged year on year, slipping by £28 million to £5.6 billion.
“2025 was a year of decisive action and swift execution, which is reflected in our strong performance,” said Georges Elhedery, group chief executive of HSBC. “Each of our four businesses performed well and we have strong momentum across the bank.
“That is why we are raising our ambition and targeting a 17% RoTE or better, excluding notable items, in each year from 2026 to 2028. We are also targeting year-on-year revenue growth over the same period on the same basis, rising to 5% in 2028.
“We are delivering growth, investing for growth and we are executing our strategy with discipline and precision. That gives us confidence in our ability to continue delivering for our shareholders.”
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