Mortgage Rate Update Monday 13 April 2026: Quiet Market After Recent HSBC and Nationwide Increases

Monday brought a quiet start to the week for mortgage rates, with no lenders making changes today. However, the past few weeks have seen significant movement from major players, with both HSBC and Nationwide pushing rates higher in recent days.

The current market shows mixed signals. While today's lack of changes might suggest stability, recent increases from two of the UK's largest lenders indicate upward pressure on mortgage pricing remains a key concern for borrowers.

Recent Rate Changes Signal Market Uncertainty

The most significant recent movement came from HSBC on 27 March, when the bank increased rates across its entire range. The changes were substantial, with 2-year fixed rates rising by 60 basis points and 5-year fixes up by 50 basis points across most loan-to-value ratios.

For first-time buyers, HSBC's 2-year rates now start at 5.17% for 60% LTV loans (up from 4.57%), while 90% LTV deals jumped to 5.29% from 4.69%. The increases were equally pronounced across home mover and remortgage products, with some remortgage rates at higher LTV levels seeing particularly sharp rises - the 90% LTV 2-year rate increased to 5.79% from 5.19%.

Nationwide followed suit on 1 April with its own rate increases, though these were more modest. The building society raised rates by 10-25 basis points across most products. First-time buyer rates at 90% LTV increased to 5.30% for 2-year fixes (from 5.15%), while 5-year rates at the same LTV rose to 5.50% from 5.25%.

Current Market Leaders

Despite recent increases, Nationwide currently offers some of the most competitive rates in the market. Their best 2-year fix stands at 4.71% for 60% LTV home movers with a £999 fee, while 5-year rates start from 4.85% at the same LTV.

For tracker mortgages, Halifax leads the field with rates from 3.96%, though this lender updated their pricing just yesterday, indicating the market remains active even when major rate announcements aren't being made.

The spread between low and high LTV deals has widened following recent changes. At HSBC, there's now a 60 basis point difference between their best and worst 2-year rates depending on deposit size, while remortgage customers face even larger spreads, particularly at higher LTV levels.

What's Driving Rate Changes?

With the Bank of England base rate steady at 3.75%, recent mortgage rate increases suggest lenders are responding to other pressures. Funding costs remain elevated, and swap rates - which influence fixed mortgage pricing - have shown volatility in recent weeks.

NatWest also made significant changes on 31 March, with some of the most dramatic increases seen in the market recently. Their remortgage rates jumped by up to 67 basis points, with 5-year deals at 75% LTV rising to 5.41% from 4.74%. New purchase rates saw more modest but still significant increases of 28 basis points across the board.

Impact on Different Borrower Types

First-time buyers continue to face the highest rates, particularly those with smaller deposits. HSBC's 95% LTV products aren't available, while Nationwide charges 5.63% for 2-year fixes at 95% LTV - a significant premium over lower LTV deals.

Existing borrowers looking to switch deals have seen some protection through lenders' retention rates, though these have also increased. HSBC's existing customer switching rates still offer better pricing than new business rates, but the gap has narrowed following recent increases.

Buy-to-Let Market Shows Resilience

Interestingly, buy-to-let rates have shown more stability than residential mortgages. HSBC's BTL rates increased alongside residential products, but the bank still offers competitive pricing starting from 5.03% for 2-year fixes at 60% LTV.

The buy-to-let market benefits from typically lower LTV lending, with most deals capped at 75% LTV, which helps keep rates more competitive than high-LTV residential products.

Looking Ahead

Today's quiet market doesn't necessarily indicate future stability. With several major lenders having updated rates in recent weeks, others may follow suit. Lloyds and Santander both updated their pricing within the past two days, suggesting continued market activity.

For borrowers currently shopping around, the recent pattern suggests rates may continue upward in the short term. Those with mortgage offers in place should consider whether to proceed quickly, while those still searching might want to compare current deals sooner rather than later.

The gap between the best and worst deals in the market has grown considerably. While Nationwide's best rates remain competitive, borrowers with smaller deposits or complex circumstances may find options more limited and expensive than just a few weeks ago.

Market Outlook

The mortgage market's recent volatility reflects broader economic uncertainty. While base rates remain stable, lenders appear to be pricing in potential future increases or responding to funding cost pressures.

For borrowers, this environment emphasises the importance of shopping around and potentially considering longer-term fixes if rates continue rising. The current market rewards those with larger deposits and straightforward circumstances, while those with higher LTV requirements face an increasingly challenging landscape.