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HSBC has pledged £500million of extra mortgage funding to help get first-time buyers on to the UK property ladder.

Figures announced yesterday by the Bank of England  revealed that mortgage approvals fell in August for the first time in 10 months.

HSBC has already loaned £1billion this year to buyers who can only raise a 10% deposit, helping make the banking giant the UK’s largest mortgage lender in the first half of 2009.

Martijn van der Heijden, head of mortgages, said: “Prices seem to have bottomed out and rates are low – so many of those who put off buying last year are looking around.”

HSBC’s 10% deposit deals are just for those who are buying a house, not for remortgaging. Its best two-year fixed rate mortgage is at 5.99%, with a £599 arrangement fee.