HSBC has set aside £1bn ($1.4bn) to lend to homebuyers who have cash deposits of 10 per cent, in a sign that lenders are showing a greater willingness to offer riskier mortgages.

The bank is poised to launch a number of deals that will lend up to 90 per cent of a property’s value. While these new deals are priced at a significant premium to the rates available to customers with larger deposits, brokers said they were competitive, given the high loan-to-value ratio.