Well said John

People with little knowledge do much damage.

Graham, london, UK

John, Birmingham, Uk. Would those be the experts who will say virtually anything in a desperate attempt to talk the property market up? You don't have to be an economist or any other expert to see that if HSBC really do match earlier lending rates (some of which were set when the BoE and LIBOR rates were far lower than now) whilst also paying depositors at a competitive savings rate then they are going to lose money. This makes them a very poor risk for both savers and shareholders - hence they'll quickly run out of money to lend. Becoming the next Northern Rock doesn't require them to make exactly the same mistakes, just to be equivalently incomepetent.

Clint, Brighton, UK

John, how does one talk oneself into a recession? The US certainly did talk itself into one with their sickly-saccharin media, but they are still in one though

Paul, Glaygate,

"I'll be taking my money out today and will watch HSBC's share price with interest."

What are you worried about? HSBC are as safe as, er, houses...

Lawrence, London, UK

If A&L is short of 'liquidity', why did it offer me a loan last week when I only phoned up to cancel a redundant direct debit?

Paul, Coventry,

20% equity is fairly good protection to start with, 23% (23% of the current value) would be equivalent to the 30% house prices overvalueation stated by the IMF (30% of the real value). Also of course you still owe them any shortfall if they repossess and sell at auction.

You can't compare them with Northern Rock, they are not borrowing the money from other banks. I'm a doom sayer and it seems like a good move to me.

Unfortunately its unlikely to help the people that really need it, 100% mortgage in April 2006 at 6x salary. Their mortgages are extremely high risk.

Tony, Belfast,

One point this article doesn't mention is that firstdirect had the best rate available at 4.75% and, as a result, received five times the normal number of applications. So they took a straightforward decision to stop accepting any more applications while they dealt with the backlog.
What's more, one of the big worries right now is for homeowners coming off fixed rates - if HSBC is prepared to do a reasonable deal, why shouldn't they?
And yes, I'm a firstdirect customer and have nothing but praise for them - they are available 24/7, friendly and their efficiency puts the big four (including HSBC) to shame!

Suzie Joseph, Kent,

I am a Mortgage Broker, who has witnessed first-hand the diminishing market. The first two comments are basically nonsense. First Direct pulled their product range for new borrowers due to an unprecendented demand for their products. The second commentator does not understand how lenders fund their respective mortgage books'.

If consumers spent a little less time believing the tabloid TV media (ITV and BBC) and contacted an expert for advice, then we all may be better off in the long-term and won't talk ourselves into an eventual recession.

John, Birmingham, Uk

seems rather convenient - 1st Direct pull their deals & causes near panic, then a couple of weeks later their parent company moves in & could potentially clean up.... A great strategy, or a cynical ply by a bank to profiteer at home owners' expense?? Now, will the FSA take a closer look at this?
I only hope HSBC does not over-charge on these deals. One thing's for sure: the media have hyped this 'credit crisis' nonsense to ridiculous levels: so things won't be so cheap & affordable for a little while. So what? Say what you like, but the fact remains that we've never had it so good!

Ash, Tunbridge Wells,

This is a very risky publicity stunt. Unless HSBC are aiming to be the next Northern Rock, why would they want to lose money for two years? I'll be taking my money out today and will watch HSBC's share price with interest.

Clint, Brighton, UK