Market Movements
Major Rate Hikes Hit Market: HSBC and Nationwide Push Rates Up 60bp - 2 April 2026
HSBC leads today's significant rate increases with rises of up to 60 basis points across residential and BTL products. Nationwide and NatWest follow with substantial increases, marking a clear upward trend in mortgage pricing.
Significant Rate Increases Dominate Today's Market
Today marks one of the most substantial upward movements in mortgage rates we've seen in recent weeks, with three major lenders implementing widespread increases across their ranges. HSBC leads the charge with aggressive hikes of up to 60 basis points, whilst Nationwide and NatWest follow suit with their own substantial adjustments.
The market trend is unambiguously upward today, affecting borrowers across all loan-to-value bands and product types. With the Bank of England base rate holding at 3.75%, these moves suggest lenders are responding to funding cost pressures rather than anticipating immediate policy changes.
HSBC Implements Sweeping Rate Increases
HSBC has delivered the day's most comprehensive repricing, affecting virtually every product in their range. The scale of these increases is particularly notable given their market position.
Residential Mortgages Hit Hardest
First-time buyers face some of the steepest increases. At 60% LTV, HSBC's 2-year fixed rate for new buyers has jumped from 4.57% to 5.17% - a substantial 60 basis point rise. The 5-year equivalent climbed from 4.68% to 5.18%, up 50 basis points.
Home movers haven't escaped the increases either. The 2-year rate at 60% LTV rose from 4.49% to 5.09% (60bp), whilst the 5-year option increased from 4.52% to 5.02% (50bp).
Existing customers switching products see similar patterns. At 70% LTV, the 2-year rate moved from 4.39% to 4.79% (40bp), and the 5-year from 4.44% to 4.74% (30bp). Interestingly, existing customers face smaller increases than new borrowers - a common strategy during repricing cycles.
Buy-to-Let Sector Also Affected
HSBC's buy-to-let rates have risen across the board. At 65% LTV, the standard purchase BTL 2-year rate increased from 4.54% to 5.14% (60bp), whilst the 5-year climbed from 4.29% to 4.89% (60bp).
Energy-efficient BTL products, typically priced more favourably, still saw significant movement. The 5-year rate at 65% LTV rose from 4.64% to 5.14% (50bp), though some discounting remains versus standard products.
Higher LTV Products Face Steep Increases
Borrowers with smaller deposits face the harshest treatment. At 90% LTV, HSBC's residential remortgage 2-year rate soared from 5.19% to 5.79% (60bp), pushing it well above the 5.5% mark that many consider a psychological barrier.
The 10-year fixed rate products, where still available, also saw substantial increases. At 60% LTV for residential switching, the rate rose from 4.84% to 5.24% (40bp).
Nationwide Joins the Upward Movement
Nationwide has implemented more measured increases across their range, though the direction remains firmly upward. Their repricing affects both new and existing borrowers, with some interesting variations in scale.
Core Products See Moderate Increases
At 60% LTV, Nationwide's home mover 2-year rate increased from 4.55% to 4.71% (16bp), whilst the 5-year equivalent rose from 4.70% to 4.85% (15bp). These increases, whilst significant, are more restrained than HSBC's aggressive moves.
First-time buyers at the same LTV band see their 2-year rate climb from 4.85% to 5.00% (15bp) and 5-year from 5.10% to 5.25% (15bp). The consistent 15 basis point increase across terms suggests a systematic repricing approach.
Rate Switch Products Face Larger Increases
Existing Nationwide customers looking to switch rates face steeper increases. The 2-year rate switch at 60% LTV jumped from 4.34% to 4.59% (25bp), whilst at 75% LTV, the same product rose from 4.46% to 4.71% (25bp).
This pattern continues at higher LTV bands. At 90% LTV, the rate switch 2-year option increased from 4.91% to 5.12% (21bp), suggesting Nationwide is managing existing customer retention through smaller increases than those faced by new borrowers.
High LTV Lending Remains Competitive
Despite increases, Nationwide maintains relatively competitive positioning in high LTV lending. Their 95% LTV first-time buyer 2-year rate rose modestly from 5.55% to 5.63% (8bp), keeping them competitive in this crucial market segment.
NatWest Implements Selective Increases
NatWest has focused their repricing on specific products, with particularly notable increases in remortgage rates. Their approach appears more targeted than the comprehensive increases seen elsewhere.
New Purchase Rates Rise Consistently
New purchase rates have increased by a consistent 28 basis points across most LTV bands. At 60% LTV, the 2-year rate moved from 4.52% to 4.80%, whilst the 5-year climbed from 4.69% to 4.97%.
At 85% LTV, the pattern continues with the 2-year new purchase rate rising from 4.84% to 5.12% (28bp) and the 5-year from 4.88% to 5.16% (28bp).
Remortgage Rates See Larger Increases
NatWest's remortgage pricing has moved more aggressively. At 60% LTV, the 2-year remortgage rate jumped from 4.56% to 5.02% (46bp) - significantly higher than the corresponding purchase rate increase.
The pattern intensifies at 75% LTV, where the 5-year remortgage rate soared from 4.74% to 5.41% (67bp) - the single largest increase recorded today. This suggests NatWest is particularly keen to manage remortgage volume or improve margins in this segment.
Market Implications and Borrower Impact
Today's rate increases represent a significant shift in market dynamics. The coordinated nature of these moves across multiple major lenders suggests common pressures affecting funding costs or risk appetite.
For borrowers currently in the market, these changes emphasise the importance of acting quickly when suitable rates are identified. The gap between new business rates and existing customer rates at some lenders creates clear advantages for those able to remain with their current provider.
Using our mortgage comparison tool becomes even more crucial in this environment, as rate differentials between lenders are widening, creating opportunities for those willing to shop around.
Looking Ahead
With three major lenders moving rates upward simultaneously, other lenders may follow suit in the coming days. Borrowers with applications in progress should consider locking in current rates where possible, whilst those yet to start their mortgage journey should prepare for a higher rate environment than existed just weeks ago.
The current best 2-year rate sits at 4.71% with Nationwide, whilst the best 5-year deal remains at 4.85%, also with Nationwide. However, given today's movements, these positions may not hold for long.
Frequently Asked Questions
Why have mortgage rates increased so dramatically today?
Three major lenders - HSBC, Nationwide, and NatWest - have implemented substantial rate increases today, with HSBC raising some rates by 60 basis points. This coordinated movement suggests lenders are responding to increased funding costs or changes in risk appetite, rather than anticipating immediate Bank of England base rate changes.
Should I lock in my mortgage rate immediately given these increases?
Given the scale of today's increases and the fact they've occurred across multiple major lenders, borrowers with applications in progress should seriously consider securing current rates where possible. The coordinated nature of these moves suggests further increases from other lenders may follow.
Are existing customers getting better deals than new borrowers?
Yes, there's a clear pattern today of existing customers facing smaller rate increases than new borrowers. For example, HSBC's existing customer switching rates increased by 40bp whilst new buyer rates rose by 60bp at the same LTV band. This creates advantages for those able to stay with their current lender.
Which mortgage terms have been affected most by today's increases?
2-year fixed rates have generally seen the largest increases, with HSBC raising some 2-year rates by 60 basis points. However, significant increases have occurred across all terms, including 5-year and 10-year products where available. Remortgage rates have been hit particularly hard at some lenders.
How do today's rates compare to the current market leaders?
Despite today's increases, Nationwide currently offers the best 2-year rate at 4.71% and best 5-year rate at 4.85%. However, given that Nationwide was one of the lenders implementing increases today, these leading positions may not remain stable for long.