Market Movements
Major Lender Rate Surge: HSBC and NatWest Lead Sharp Increases on 2nd April 2026
HSBC leads major rate increases with rises up to 60bp across most products, while NatWest hikes remortgage rates by up to 67bp. Nationwide joins with modest 5-25bp increases, marking a decisive upward shift in mortgage pricing.
Widespread Rate Increases Hit Three Major Lenders
Thursday 2nd April 2026 has delivered a decisive shift in mortgage pricing, with three major lenders implementing significant rate increases across their product ranges. HSBC has executed the most comprehensive repricing, raising rates by between 15bp and 60bp across virtually every product category, while NatWest has implemented equally substantial increases of up to 67bp. Nationwide has joined the upward movement with more modest increases of 5bp to 25bp.
The scale of today's changes affects thousands of mortgage products, creating immediate implications for borrowers in the application process and those considering their options ahead of upcoming remortgage dates.
HSBC's Comprehensive Rate Reset
HSBC has implemented the day's most extensive repricing exercise, with increases affecting both residential and buy-to-let products across all loan-to-value ratios. The pattern shows consistent increases, with new customer products seeing the largest adjustments.
First-Time Buyers and Home Movers Hit Hardest
First-time buyer rates have increased by 60bp on 2-year fixes and 50bp on 5-year deals across most LTV bands. At 60% LTV, the 2-year rate has moved from 4.57% to 5.17%, while the 5-year option increased from 4.68% to 5.18%. These represent substantial monthly payment increases for new borrowers entering the market.
Home mover products have experienced identical increases, with 2-year fixes at 70% LTV rising from 4.59% to 5.19% and 5-year deals moving from 4.57% to 5.07%. The consistency of these increases suggests a deliberate repricing strategy rather than product-specific adjustments.
Existing Customer Rate Changes
HSBC's existing customers face more moderate increases on switching and additional borrowing products. Rate switch deals at 60% LTV have seen 2-year rates increase from 4.29% to 4.69% (40bp) and 5-year rates move from 4.40% to 4.70% (30bp). Tracker rates across existing customer products have increased by 15-20bp, reflecting the lender's adjustment to funding costs.
Buy-to-Let Portfolio Adjustments
The buy-to-let market has not escaped HSBC's repricing, with purchase rates at 60% LTV seeing 60bp increases on both 2-year and 5-year fixes. The 2-year purchase rate has moved from 4.43% to 5.03%, while the 5-year option increased from 4.18% to 4.78%. Remortgage rates have followed similar patterns, with increases of 60bp on shorter terms and 20bp on tracker products.
NatWest Implements Selective but Sharp Increases
NatWest has taken a more targeted approach, implementing significant increases across specific rate bands while maintaining consistent percentage point adjustments within each LTV category.
Purchase Market Pricing
New purchase rates have increased by 28bp across most LTV bands. At 60% LTV, the 2-year fix has moved from 4.52% to 4.80%, while the 5-year deal increased from 4.69% to 4.97%. Higher LTV bands have seen similar adjustments, with 85% LTV 2-year rates moving from 4.84% to 5.12%.
Remortgage Rate Surge
NatWest's remortgage pricing has experienced the day's most dramatic increases. The 75% LTV 5-year rate has surged by 67bp from 4.74% to 5.41%, representing one of the largest single-day increases tracked this year. Other remortgage rates have increased by 23-46bp, with the pattern suggesting particular pressure on refinancing products.
Nationwide's Measured Adjustments
Nationwide has implemented more restrained increases, with most products seeing adjustments of 10-25bp. The building society's approach appears more cautious, with first-time buyer rates increasing by just 15bp on most terms.
Competitive Positioning Maintained
Despite the increases, Nationwide has maintained competitive positioning across several categories. Their 2-year fix at 60% LTV now stands at 4.71%, remaining among the most competitive options available. Rate switch products have seen 20-25bp increases, while remortgage rates have increased by 13-25bp across different LTV bands.
Market Context and Borrower Impact
Today's increases continue the trend of lenders adjusting their pricing in response to funding cost pressures and swap rate movements. With the Bank of England base rate at 3.75%, lenders are rebuilding margins that had compressed during the recent period of rate stability.
For borrowers currently in application, these changes highlight the importance of rate locks and decision deadlines. Those with offers from HSBC or NatWest should review their timeline carefully, as these increases could add hundreds of pounds to annual mortgage costs.
The remortgage market faces particular pressure, with NatWest's 67bp increase on 5-year deals representing a significant cost increase for borrowers refinancing from lower rates. This underscores the value of early remortgage planning and securing rates well ahead of current deal expiry dates.
Current market-leading rates remain available from other lenders, with our comparison tool showing alternatives across all major categories. However, the coordinated nature of today's increases from three major lenders suggests broader market repricing may continue in the coming weeks.
Borrowers should consider the full cost impact of these changes, including the effect on stress testing for affordability assessments. Higher rates may affect maximum borrowing capacity, particularly for those purchasing at higher LTV ratios or with tighter income multiples.
Frequently Asked Questions
How much will HSBC's rate increases affect my monthly payments?
HSBC's 60bp increase on first-time buyer products means a £300,000 mortgage would cost approximately £100 more per month. The exact impact depends on your loan amount, term, and specific product, but increases of £50-150 monthly are typical for average mortgage sizes.
Should I switch from NatWest given their 67bp remortgage rate increase?
If you're currently in a NatWest application for their 75% LTV 5-year fix, the 67bp increase means significantly higher costs. Compare alternatives immediately, as other lenders may offer better rates. However, consider exit fees and the time required to switch applications.
Are these rate increases likely to spread to other lenders?
The coordinated increases from three major lenders suggest broader market repricing pressure. While not guaranteed, other lenders may follow with their own increases in the coming days or weeks, particularly if funding costs continue to rise.
How do today's rates compare to the current market leaders?
Despite the increases, competitive rates remain available. Nationwide's 4.71% 2-year fix at 60% LTV remains market-competitive, while Halifax currently offers the best tracker rate at 3.96%. Shopping around remains essential for the best deals.
What should I do if my current mortgage offer expires soon?
If you have an existing offer from HSBC or NatWest, check your rate lock expiry date immediately. Consider accepting the offer if rates are still competitive, or explore alternatives from other lenders. Don't delay, as market-wide increases may continue.