Sunday 12 April 2026: Mixed Signals as HSBC and Nationwide Raise Rates While Others Hold Steady

While no lenders updated their mortgage rates today, recent weeks have painted a picture of cautious upward movement across the market. HSBC delivered the most significant shock on 27 March with substantial rate increases, while Nationwide followed with more modest adjustments on 1 April.

HSBC's Major Rate Restructure

The biggest story from recent weeks remains HSBC's comprehensive rate increase on 27 March. The banking giant raised rates across its entire mortgage range, with 2-year fixed deals seeing the steepest increases of 0.60 percentage points.

For home movers, HSBC's 2-year fixed rates now start at 5.09% for 60% LTV purchases (up from 4.49%), while 5-year deals begin at 5.02% (up from 4.52%). The increases were consistent across all loan-to-value ratios, suggesting HSBC was implementing a broad pricing strategy rather than targeting specific risk segments.

First-time buyers weren't spared, with rates jumping from 4.57% to 5.17% for 2-year deals at 60% LTV. Even HSBC's tracker rates increased by 0.20 percentage points, moving the 60% LTV tracker from 4.19% to 4.39%.

The remortgage market saw some of the steepest increases. HSBC's 90% LTV remortgage rates jumped from 5.19% to 5.79% for 2-year deals – a substantial 0.60 percentage point increase that will significantly impact borrowers with limited equity.

Nationwide's More Measured Approach

Nationwide took a more restrained approach with its 1 April pricing update. The building society's increases were smaller but still notable across most products.

Home movers saw 2-year rates increase modestly from 4.55% to 4.71% at 60% LTV (a 0.16 percentage point rise), while 5-year deals moved from 4.70% to 4.85% (up 0.15 percentage points). Nationwide's increases became more pronounced at higher LTVs, with 90% LTV home mover rates rising from 5.02% to 5.25% for 2-year deals.

First-time buyers faced slightly larger increases, with rates at 95% LTV moving from 5.55% to 5.63% for 2-year products and from 5.54% to 5.69% for 5-year deals. These changes, while smaller than HSBC's adjustments, still represent meaningful cost increases for borrowers with minimal deposits.

NatWest's Selective Increases

NatWest updated rates on 31 March, focusing primarily on remortgage products. The bank implemented increases ranging from 0.23 to 0.67 percentage points across different terms and LTV bands.

New purchase rates saw more modest adjustments, with 2-year deals at 60% LTV rising from 4.52% to 4.80% (up 0.28 percentage points). However, remortgage customers faced steeper increases, particularly on 5-year products where some rates jumped by over 0.60 percentage points.

Market Leaders Hold Their Ground

Despite the increases from major lenders, some institutions have maintained stable pricing. Halifax and Lloyds both updated their rates as recently as yesterday (12 April) but appear to be holding competitive positions.

According to our latest mortgage comparison data, Nationwide currently offers the most competitive rates for longer-term fixes, with their 2-year deals starting at 4.71% and 5-year products from 4.85%. These rates, while higher than they were two weeks ago, remain among the market's most competitive offerings.

For borrowers prioritising tracker mortgages, Halifax currently leads with rates from 3.96%, providing a significant advantage over the current Bank of England base rate of 3.75%.

What's Driving These Changes?

The recent rate increases reflect several market pressures. Funding costs have remained elevated, and lenders are adjusting their pricing to maintain margins while managing demand. The timing of these increases – particularly HSBC's comprehensive adjustment – suggests lenders are being more selective about the business they want to attract.

The pattern of increases also reveals strategic positioning. HSBC's across-the-board rises indicate a focus on profitability over market share, while Nationwide's more measured approach suggests a balance between competitiveness and margin protection.

Implications for Borrowers

These recent changes highlight the importance of acting quickly in the current market. The gap between the best and average rates has widened, making thorough comparison essential. Borrowers should also consider the stability of their chosen lender's pricing strategy.

For those with existing HSBC mortgages approaching renewal, the bank's recent increases make shopping around particularly important. The 0.60 percentage point increase on many products represents a significant cost difference over a mortgage term.

First-time buyers and those with higher LTV requirements should pay particular attention to Nationwide's positioning, as they continue to offer some of the market's most competitive rates despite recent increases.

Looking Ahead

With several major lenders having now adjusted their pricing in recent weeks, the market appears to be settling into a new equilibrium. However, the mixed approach – with some lenders raising significantly while others hold steady – suggests we may see further adjustments as institutions respond to competitive pressures.

Borrowers considering a mortgage application should monitor these developments closely. The recent pattern of selective increases by major lenders could continue, making timing and lender choice crucial factors in securing competitive rates.