Major Rate Shock: HSBC Raises Mortgage Rates by Up to 60bp While Halifax Actually Cuts Some Products - 27 March 2026

Today delivered a stark reminder of how quickly the mortgage market can shift, with HSBC implementing sweeping rate increases of 20-60 basis points across virtually every product in their range, while Halifax bucked the trend with some welcome rate reductions on selected deals.

HSBC's Comprehensive Rate Rises Dominate the Day

HSBC has made the most significant moves today, pushing rates higher across residential, buy-to-let, and international mortgage products. The increases varied by product type, with new business seeing the steepest hikes.

Residential Mortgage Increases

For first-time buyers and home movers, HSBC's 2-year fixed rates jumped by a substantial 60 basis points across all LTV bands. At 60% LTV, the 2-year rate for first-time buyers climbed from 4.57% to 5.17%, while 5-year deals increased by 50bp from 4.68% to 5.18%. Home movers faced identical increases, with their 60% LTV 2-year rate rising from 4.49% to 5.09%.

The pattern continued at higher LTV ratios. At 90% LTV, first-time buyer 2-year rates increased from 4.69% to 5.29%, and 5-year rates from 4.87% to 5.37%. These moves push HSBC's rates well above current market leaders, with NatWest now offering the most competitive 2-year rate at 4.52%.

Buy-to-Let Portfolio Hit Hard

HSBC's buy-to-let products experienced equally significant increases. Purchase BTL 2-year rates at 60% LTV rose by 60bp from 4.43% to 5.03%, while 5-year deals increased by 60bp from 4.18% to 4.78%. Remortgage BTL rates followed suit, with the 60% LTV 2-year product jumping from 4.54% to 5.14%.

Energy-efficient BTL mortgages, typically offering slight discounts, also increased by 50-60bp across the board. The 65% LTV 2-year energy-efficient purchase rate moved from 4.54% to 5.14%.

Existing Customer Products Not Spared

Even HSBC's existing customers faced rate increases, though these were more modest at 15-40bp. Rate switches and additional borrowing products saw 2-year rates rise by 40bp and 5-year rates by 30bp. The existing customer switching rate at 60% LTV increased from 4.29% to 4.69% for 2-year deals.

International Mortgages See Significant Hikes

HSBC's international mortgage range experienced some of the steepest increases. The international purchase 2-year rate at 60% LTV jumped 60bp from 4.98% to 5.58%, while 5-year deals rose 50bp from 5.08% to 5.58%. These moves make HSBC's international products considerably more expensive than standard residential deals.

Market Context: Mixed Signals Across Lenders

While HSBC dominated today's changes with increases, other lenders provided contrasting moves that highlight the fragmented nature of current pricing strategies.

Nationwide's Earlier Increases Still Reverberating

Nationwide's rate changes from earlier in the week continue to impact the market landscape. Their first-time buyer 2-year rate at 60% LTV increased by 83bp from 4.02% to 4.85%, representing one of the steepest single increases seen recently. Home mover rates rose by 71bp at the same LTV, from 3.84% to 4.55%.

The building society's rate switch products also increased substantially, with 2-year deals rising by 62bp and 5-year products by 60bp across most LTV bands.

Barclays Maintains Upward Pressure

Barclays continued their recent pattern of rate increases, with new purchase 2-year rates at 60% LTV rising by 105bp from 3.55% to 4.60%. Their 5-year rates increased by an identical 105bp from 3.75% to 4.80%. Remortgage products saw similar increases, with 2-year deals rising 104bp and 5-year products up 113bp.

NatWest's Modest Adjustments

NatWest implemented more measured increases of 20-50bp across their range. New purchase 2-year rates at 60% LTV rose by 37bp from 4.15% to 4.52%, while remortgage equivalents increased by 39bp to 4.56%. Despite these increases, NatWest now offers some of the most competitive rates in the market.

Halifax and Lloyds: Rare Bright Spots

In stark contrast to the prevailing trend, Halifax provided some welcome relief with selective rate reductions. Their 90% LTV new purchase 2-year rate actually decreased by 12bp from 5.24% to 5.12%, while the 95% LTV equivalent dropped by 34bp from 5.89% to 5.55%.

These cuts, though limited in scope, suggest Halifax is competing aggressively for high-LTV business. Lloyds, as part of the same group, implemented identical changes across their range.

Santander's Measured Approach

Santander implemented consistent 25-39bp increases across their residential range, with 2-year rates generally rising by 39bp and 5-year deals by 25bp. New purchase rates at 60% LTV increased from 4.48% to 4.87% for 2-year deals and from 4.60% to 4.85% for 5-year products.

What This Means for Borrowers

Today's changes create a challenging environment for mortgage applicants. The scale of HSBC's increases effectively removes them from consideration for rate-sensitive borrowers, while other lenders' more modest increases still push the market higher overall.

Current market leaders include NatWest with their 4.52% 2-year rate and 4.69% 5-year deal, both carrying a £995 fee. For tracker mortgages, Halifax offers the best rate at 3.96%, representing a margin of just 21bp above the Bank of England base rate of 3.75%.

The 10-year fixed rate market remains limited, with Nationwide offering the most competitive deal at 5.04%. These longer-term products continue to attract borrowers seeking payment certainty despite the rate premium.

Timing Considerations

For borrowers with applications in progress with HSBC, these rate increases will likely apply to new applications or those not yet formally offered. Those with offers in hand should check their reservation periods carefully.

The mixed nature of today's changes suggests lenders are responding to different funding cost pressures and strategic priorities. This fragmentation creates opportunities for borrowers willing to shop around, though the overall trend remains upward.

The mortgage market's current volatility makes it crucial to secure competitive rates quickly when available. Those considering remortgaging should compare current deals promptly, as today's changes demonstrate how rapidly pricing can shift.

With HSBC's significant increases removing a major competitor from many rate comparisons, remaining lenders may face less pressure to keep rates low, potentially leading to further increases in the coming weeks.