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Cammy Amaira, director of sales for Intelligent Finance, said despite the credit crunch HBoS aimed to continue to write one in five mortgage deals in 2008 and while it had increased rates earlier in the year these had been reduced for many customers in recent weeks in a bid to attract more business.

His comments came after Abbey announced an estimated 15.9 per cent increase in its market share in the first quarter of 2008 and HBSC told Mortgage Adviser its market share has trebled from 3 per cent to about 9 per cent in the last 3 months.

Abbey previously had a 9.45 per cent market share and HSBC had a 3.59 per cent chunk of all mortgage UK business arranged in 2006, according to statistics produced by the Council of Mortgage Lenders.

Tim Pie, head of press for HSBC Personal Finance, said the increase in HSBC's market share could not be solely attributed to its Rate Matcher deal as the bank had received an increased interest in its ordinary mortgage range.

Rate Matcher mortgages made up just 15 per cent of all HSBC mortgages transacted in the last three months, he said.

While the Rate Matcher deal ended last week for non-HSBC customers, Mr Pie said it was hoped the bank's new range of discounted rate mortgage would also prove to be popular.

When asked by Mortgage Adviser if they planned to maintain their increased market share, Mr Pie said: "We want to maintain our profile in the market and continue to be competitive.

"We are not taking on any risk and we remain a consistent lender and that has stood us in pretty good stead."

Mr Amaira said: "HBoS wants to do one in five mortgages this year. How much borrowing we do will depend on the size of the overall market this year but we want to have that market share."

When asked if HBoS wanted the market share to be distributed differently than it had been in the past around its five brands of Halifax, Bank of Scotland, Intelligent Finance, TMB and BM Solutions, Mr Amaira said offset deals were expected to grow in popularity this year.

However Mr Amaira's comments about market share came as HBoS came under fire for introducing a mortgage account fee.

Heather Scott, head of PR for HBoS Mortgages, said the mortgage account fee was a fixed, clear, upfront fee and was not interest bearing.

She said: "The mortgage account fee replaces several service fees, which to date have been charged on an ad hoc basis. By combining all of these in to one clear fee borrowers are better off."

The fee is £245 for Halifax and Bank of Scotland and £275 for TMB, which Ms Scott said was in line with the market.

She said Intelligent Finance and Birmingham Midshires would introduce the fee in due course.

Louise Cuming, head of mortgages at price comparsion website moneysupermarket.com, said it was disappointing that HBoS had decided to introduce a fee of £245 just when borrowers were feeling the pain of increasing rates and the rising cost of living.