Rate Chaos: HSBC Hammers Borrowers with 60bp Hikes While Others Hold Steady - 1 April 2026

HSBC Delivers Brutal Rate Shock Across Entire Range

HSBC has delivered the most punishing rate increases we've seen in months, hiking mortgage rates by between 15bp and 60bp across virtually every product in their range. The carnage is extensive, with their First Time Buyer products taking the biggest hit - jumping from 4.57% to 5.17% on 2-year fixes at 60% LTV, a savage 60 basis point increase.

The scale of HSBC's increases is staggering. Their International products have been particularly hammered, with 2-year fixes climbing from 4.98% to 5.58% - another 60bp jump that puts these rates well above competitive levels. Even existing customers haven't been spared, with switching products seeing increases of 40bp across the board.

What's particularly concerning is how comprehensive these rises are. HSBC hasn't cherry-picked certain LTV bands or product types - they've increased rates across residential, BTL, energy-efficient, and international products simultaneously. This suggests either significant funding cost pressures or a deliberate strategy to reduce lending volumes.

Nationwide Takes a More Measured Approach

While HSBC was wielding the axe, Nationwide showed more restraint with smaller increases ranging from 5bp to 25bp. Their Rate Switch products saw the biggest moves, with 2-year fixes at 60% LTV rising from 4.34% to 4.59% - a 25bp increase that still leaves them competitive.

Nationwide's approach appears more tactical. They've pushed their First Time Buyer rates up by just 15bp, taking their 2-year fix at 60% LTV from 4.85% to 5.00%. At 75% LTV, the same product moved from 4.88% to 5.03% - increases that maintain their market position while improving margins.

The building society's 10-year fixes have also crept up by 15bp across most LTV bands, though these longer-term products remain reasonably priced. Their 10-year fix at 60% LTV now sits at 5.19% - still the best 10-year rate in the market today.

Big Banks Show Mixed Signals

Barclays delivered some of the most dramatic increases we've tracked, though the picture is complicated by product withdrawals and reintroductions. Their 2-year fixes have jumped by over 100bp in many cases - with their 60% LTV New Purchase product rocketing from 3.55% to 4.60%, a massive 105bp increase.

However, these moves need context. Barclays appears to be repricing after a period of ultra-competitive rates that were likely unsustainable. Their 5-year fixes have seen similar treatment, with New Purchase products at 60% LTV climbing from 3.75% to 4.80% - another 105bp jump.

NatWest has been more conservative, implementing increases of 23bp to 67bp across their range. Their New Purchase products have generally seen 28bp increases, taking their 2-year fix at 60% LTV from 4.52% to 4.80%. Remortgage products have faced slightly larger increases, with some 5-year fixes jumping by 67bp.

Halifax and Lloyds Hold the Line

In stark contrast to the carnage elsewhere, Halifax and Lloyds have made only minimal adjustments. Both lenders have increased their 2-year fixes by just 10-15bp across most LTV bands, showing remarkable restraint in today's volatile environment.

Halifax's 2-year New Purchase product at 60% LTV has edged up from 4.66% to 4.81% - a mere 15bp increase that maintains their competitive positioning. Their 5-year products have seen even smaller moves, with most increasing by just 5bp. This measured approach could see them gain significant market share as borrowers flee from HSBC's punitive pricing.

The same pattern holds at Lloyds, where 2-year fixes have increased by 15bp and 5-year products by just 5bp. Their tracker rates have remained completely unchanged, offering some stability for borrowers who prefer variable rate products.

BTL Market Feels the Squeeze

Buy-to-let investors haven't escaped today's rate storm. HSBC has increased BTL rates by 15bp to 60bp across the board, with their Purchase BTL products particularly affected. At 60% LTV, their 2-year BTL fix has jumped from 4.43% to 5.03% - a 60bp increase that will significantly impact investor returns.

The pattern continues across higher LTV bands, with 75% LTV BTL products seeing similar increases. HSBC's energy-efficient BTL products have also been hit, though slightly less severely at 50bp increases for most terms.

International BTL has been devastated, with products jumping by 60bp across the range. HSBC's 2-year International BTL fix at 60% LTV has surged from 4.94% to 5.54% - making these products increasingly uncompetitive.

Market Outlook: Diverging Strategies

Today's moves reveal a market where lenders are pursuing dramatically different strategies. HSBC appears to be actively discouraging new lending through punitive pricing, while Halifax and Lloyds are positioning for growth with minimal increases.

The scale of divergence is unprecedented. Where HSBC's First Time Buyer 2-year fix at 60% LTV now sits at 5.17%, Barclays offers the same term at just 4.60% - a 57bp gap that will drive significant business flows.

For borrowers, this creates both challenges and opportunities. Those with HSBC products coming to an end face a stark choice: accept significantly higher rates or switch to more competitive lenders. The good news is that alternatives exist, with several major lenders holding rates steady or making only modest increases.

The Bank of England base rate remains at 3.75%, so today's moves reflect lender-specific funding costs and strategic decisions rather than broader monetary policy changes. This suggests we could see continued divergence as lenders respond to their individual circumstances.