Market Movements
Major Rate Upheaval: HSBC Hikes by 60bp While Barclays Jumps Over 100bp - Wednesday 1 April 2026
Major lenders delivered substantial rate increases today, with Barclays hiking some products by over 128bp and HSBC implementing 50-60bp rises across new business. The widespread nature of these increases signals a significant shift in the mortgage market as we enter April.
Dramatic Rate Increases Sweep Major Lenders
Today has delivered one of the most significant rate adjustment days we've seen in months, with major lenders implementing substantial increases across their mortgage ranges. HSBC, Barclays, NatWest, Halifax, Lloyds, and Nationwide have all pushed rates higher, signalling a clear shift in pricing strategy as we move into April.
The standout move comes from Barclays, which has delivered eye-watering increases of over 100 basis points on several products. Meanwhile, HSBC has implemented a comprehensive repricing across its entire range, with consistent increases that will affect thousands of borrowers.
HSBC's Comprehensive Rate Overhaul
HSBC has implemented the most systematic rate adjustment, increasing prices across virtually every product and LTV band. The pattern is remarkably consistent: existing customer products have risen by 15-40bp, while new business rates have jumped by 50-60bp.
Existing Customer Products See Modest Increases
For existing customers looking to switch or borrow more, HSBC's increases have been relatively restrained. Two-year fixes for existing customers switching have risen by 40bp across most LTV levels - from 4.29% to 4.69% at 60% LTV, and from 4.39% to 4.79% at both 70% and 75% LTV.
Buy-to-let existing customer products have seen similar treatment, with 40bp increases on two-year deals and 30bp rises on five-year fixes. At 60% LTV, the two-year BTL rate for existing customers switching has moved from 4.19% to 4.59%.
New Business Rates Jump Significantly
First-time buyers and home movers face steeper increases of 50-60bp. The first-time buyer two-year rate at 60% LTV has jumped from 4.57% to 5.17% - a substantial 60bp increase. Five-year fixes have risen by 50bp across the board, taking the 60% LTV rate from 4.68% to 5.18%.
Home movers haven't escaped the increases either. At 70% LTV, the two-year rate has risen from 4.59% to 5.19%, while the five-year option has moved from 4.57% to 5.07%.
International mortgage products have been hit particularly hard, with some rates increasing by 60bp. The international purchase two-year rate at 60% LTV has risen from 4.98% to 5.58%.
Barclays Delivers Shock Rate Hikes
Barclays has implemented the most dramatic increases of the day, with some products rising by over 100 basis points. The lender's existing customer switching two-year rate at 60% LTV has rocketed from 3.52% to 4.80% - an extraordinary 128bp increase.
New Purchase Rates Soar
New purchase customers face equally substantial increases. The two-year rate at 60% LTV has jumped from 3.55% to 4.60% (105bp), while the five-year equivalent has risen by the same margin from 3.75% to 4.80%.
Even ten-year fixes haven't been spared, with the 60% LTV rate increasing by 63bp from 4.72% to 5.35%. At higher LTV levels, the increases remain significant - the 75% LTV two-year purchase rate has risen from 3.78% to 4.66%, an 88bp jump.
Remortgage Products Hit Hard
Remortgage customers face similarly steep increases. At 60% LTV, the two-year rate has risen from 3.62% to 4.66% (104bp), while the five-year option has increased by 113bp from 3.68% to 4.81%.
At 85% LTV, remortgage rates have seen increases of over 100bp, with the two-year rate moving from 4.05% to 5.14% - a substantial 109bp rise.
Nationwide's Measured Increases
Nationwide has taken a more measured approach, implementing increases of 10-30bp across its range. First-time buyer rates have seen 30bp increases on both two and five-year fixes, while home mover products have risen by 25-30bp.
At 60% LTV, the home mover two-year rate has increased from 4.25% to 4.55%, while the five-year option has moved from 4.45% to 4.70%. The ten-year fix has seen a smaller 20bp increase from 4.84% to 5.04%.
Rate switch products for existing customers have seen the smallest increases, typically 15-25bp. At 75% LTV, the two-year rate switch option has risen from 4.21% to 4.46%.
NatWest Implements Consistent 28bp Increases
NatWest has adopted a systematic approach with 28bp increases across most products. New purchase rates at 60% LTV have risen from 4.52% to 4.80% for two-year fixes, and from 4.69% to 4.97% for five-year deals.
Remortgage customers face slightly larger increases, with some products rising by up to 67bp. The 75% LTV five-year remortgage rate has jumped from 4.74% to 5.41% - one of NatWest's steepest increases.
Halifax and Lloyds: Smaller Adjustments
Halifax and Lloyds have implemented the smallest increases of the day, with most products rising by just 5-15bp. New purchase two-year rates have increased by 15bp across most LTV levels, while five-year fixes have seen 5bp rises.
At 60% LTV, Halifax's two-year purchase rate has moved from 4.66% to 4.81%, while the five-year equivalent has risen marginally from 4.90% to 4.95%.
Market Implications and Best Rates
Despite today's increases, some competitive rates remain available. Nationwide continues to offer the best two-year rate at 4.55% for home movers at 60% LTV, while their five-year rate of 4.70% remains market-leading.
For trackers, Halifax offers the lowest rate at 3.96% for 60% LTV purchases, representing a margin of just 21bp over the current Bank of England base rate of 3.75%.
Today's moves suggest lenders are responding to funding cost pressures and potentially positioning for further base rate increases. The scale of Barclays' increases in particular indicates significant repricing pressure in the wholesale funding markets.
Borrowers with applications in progress should check whether their rates remain available, as these increases will affect new business from today. Those considering remortgaging should act quickly, as the trend appears firmly upward across all major lenders.
Frequently Asked Questions
Why has Barclays increased rates by over 100bp in a single day?
Barclays' dramatic rate increases of up to 128bp likely reflect significant changes in their funding costs and risk appetite. Such large single-day moves typically indicate the lender was previously pricing below market levels and needed to rapidly adjust to maintain profitability, or they're responding to wholesale funding market pressures.
Are HSBC's rate increases permanent or temporary?
While lenders don't typically announce whether rate changes are permanent, HSBC's systematic increases across all products suggest a strategic repricing rather than temporary adjustment. The consistent pattern of 50-60bp increases for new business indicates this is likely their new pricing structure for the foreseeable future.
Should I rush to submit my mortgage application after these increases?
If you have a Decision in Principle or are close to submitting an application, you should act quickly as today's increases apply to new business immediately. However, don't rush into a poor deal - some lenders like Nationwide still offer competitive rates, so compare options carefully before committing.
Which lenders still offer the best rates after today's increases?
Nationwide emerges as the clear winner with the best two-year rate at 4.55% and five-year rate at 4.70% for home movers at 60% LTV. Halifax offers the best tracker at 3.96%. These lenders implemented smaller increases compared to HSBC and Barclays, making them more competitive.
Do these rate rises indicate the Bank of England will increase base rate soon?
While mortgage rate increases often precede base rate rises, lenders' pricing also reflects their own funding costs and risk appetite. Today's moves, particularly the scale of increases from Barclays and HSBC, suggest lenders are pricing in potential future base rate rises or responding to increased wholesale funding costs rather than just tracking current policy rates.