HSBC signs up for flagship UK home loan scheme

LONDON Tue Oct 8, 2013 4:22am EDT

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LONDON Oct 8 (Reuters) - HSBC Holdings, Europe's biggest bank, said it will sign up to a flagship UK programme to help people buy their own homes that was launched on Tuesday.

The scheme, known as Help to Buy, allows home buyers to put down a deposit of as little as 5 percent and gives banks greater protection against losses. It also allows them to set aside less capital than against a normal mortgage.

HSBC said it will offer Help to Buy mortgages with a 5-10 percent deposit later this year. They will only be sold in its branches, and not through brokers.

State-backed Royal Bank of Scotland and Lloyds have signed up to the scheme, but Barclays and Santander UK said they are still considering it.

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