By Lana Clements

Banking giant HSBC says it will inject at least £15 billion into the struggling mortgage market in the UK this year. This includes a commitment to lend £3 billion to first-time buyers who, since the credit crunch hit, have been fighting to meet stringent requirements.

The announcement will put pressure on other mortgage lenders to help UK homebuyers with similar measures. According to the Council of Mortgage Lenders (CML) the mortgage market is expected to shrink this year, adding to the woes of a housing market, which critics describe as, merely treading water.

Part of the problem is first-time buyers who have found themselves priced out of the market. Unable to afford the huge deposits now required to qualify for a mortgage, would-be first-time buyers have little option but to continue renting.

This has led to rent prices burgeoning, making it even more difficult to save for deposits. Meanwhile lenders have been hotly competing to offer buy-to-let mortgages, neglecting the first-time buyers and fuelling the vicious circle.

However, it is estimated the push by HSBC will aid approximately 27,000 first-time buyers, alongside 150,000 other home buyers. The move will see the bank's market share rise to 11%, the largest it has ever held.

Martijn van der Heijden, head of lending at HSBC, says: "In 2011, we offered UK borrowers some of the most competitive rates around and we plan to continue this in 2012. HSBC has no intention of closing its doors to customers, nor will we compromise our reputation for responsible lending.

"Today's announcement to make at least £15 billion available to UK homeowners with £3 billion explicitly for first-time buyers demonstrates HSBC's commitment to continuing to help people move up or indeed take the first-step onto the housing ladder."