Mortgage Mayhem: HSBC Hikes Rates by 60bps While Halifax Cuts - 28 March 2026

What a rollercoaster day in the mortgage market. While most lenders have been pushing rates higher, we're seeing some fascinating divergences that could spell opportunity for savvy borrowers. HSBC has delivered the most aggressive increases, hiking rates by up to 60 basis points across their entire range, whilst Halifax and Lloyds have actually cut rates on some products. Let me walk you through what's happened and what it means for your mortgage hunt.

HSBC's Aggressive Rate Rises Dominate Headlines

HSBC has made the biggest waves today with substantial increases across virtually every product line. Their 2-year fixes have jumped by 60 basis points for most purchase and remortgage products, whilst existing customers switching have seen increases of 40 basis points.

Here's what HSBC borrowers are now facing:

• First Time Buyer 2-year fix (60% LTV): 4.57% → 5.17% (+60bps)
• Home Mover 2-year fix (60% LTV): 4.49% → 5.09% (+60bps)
• Remortgage 2-year fix (60% LTV): 4.58% → 5.18% (+60bps)
• Purchase BTL 2-year fix (60% LTV): 4.43% → 5.03% (+60bps)

The 5-year fixes haven't escaped either, with increases of 50 basis points across most products. Even HSBC's existing customers borrowing more - traditionally offered preferential rates - have seen their 2-year fixes rise from 4.29% to 4.69% at 60% LTV.

Tracker rates haven't been spared, though the increases are more modest at 15-20 basis points. HSBC's tracker for new purchases now sits at 4.39% (up from 4.19%) at 60% LTV.

Nationwide's Substantial Increases Across All LTVs

Nationwide has also delivered significant rate rises, though not quite matching HSBC's aggression. Their increases range from 45-83 basis points, with first-time buyers bearing the brunt.

Notable Nationwide changes include:

• First Time Buyer 2-year fix (60% LTV): 4.02% → 4.85% (+83bps)
• Home Mover 2-year fix (60% LTV): 3.84% → 4.55% (+71bps)
• Rate Switch 2-year fix (60% LTV): 3.72% → 4.34% (+62bps)

The 5-year fixes have seen similar treatment, with increases of 60-69 basis points. Nationwide's tracker products have seen more modest 10 basis point rises, reflecting the building society's cautious approach to variable rate pricing.

Barclays Delivers Eye-Watering Increases

Barclays has perhaps delivered the most shocking increases of the day. Their 2-year fixes have jumped by over 100 basis points in many cases, with some products seeing increases exceeding 120 basis points.

The standout moves from Barclays:

• Existing Customer Switching 2-year fix (60% LTV): 3.52% → 4.80% (+128bps)
• New Purchase 2-year fix (60% LTV): 3.55% → 4.60% (+105bps)
• Remortgage 2-year fix (60% LTV): 3.62% → 4.66% (+104bps)

Even more dramatic is Barclays' tracker for new purchases at 75% LTV, which has rocketed from 3.55% to 5.74% - an extraordinary increase of 219 basis points. This suggests Barclays is either pricing itself out of certain market segments or facing significant funding pressures.

Counter-Trend: Halifax and Lloyds Buck the Market

Whilst most lenders are hiking rates, Halifax and Lloyds are playing a different game entirely. Both have kept their 2-year fixes unchanged whilst making strategic adjustments elsewhere.

Halifax's positioning today:

• 2-year fixes remain static across all LTV bands
• 5-year fixes increased by 37-47 basis points
• 10-year fixes up by 47-54 basis points
• Notable exception: 95% LTV 2-year fix cut from 5.89% to 5.55% (-34bps)

This creates an interesting dynamic where Halifax now offers some of the most competitive short-term fixes in the market. Their 60% LTV 2-year fix remains at 4.66%, considerably below many competitors.

NatWest and Santander: Modest Movements

NatWest has taken a more measured approach with increases of 20-52 basis points. Their competitive positioning remains strong, with their 60% LTV 2-year fix now at 4.52% - currently one of the best rates available from a major lender.

Santander has opted for consistent 25-39 basis point increases across most products, maintaining their market position without dramatic moves. Their 2-year fixes range from 4.87% to 5.65% depending on LTV and product type.

Buy-to-Let Market Sees Parallel Increases

The buy-to-let market hasn't escaped the rate rises. HSBC's BTL products have seen 40-60 basis point increases across 2-year fixes, with their Purchase BTL at 60% LTV rising from 4.43% to 5.03%.

Existing BTL customers switching with HSBC now face rates of 4.59% (up from 4.19%) at 60% LTV, showing that even loyalty doesn't provide complete protection from rate rises.

What This Means for Borrowers

Today's moves highlight the importance of acting quickly in this market. The divergence between lenders creates opportunities, but also emphasises how rapidly rates can change.

For those seeking 2-year fixes, NatWest currently offers the best headline rate at 4.52% (60% LTV), closely followed by Halifax at 4.66%. HSBC's aggressive pricing has pushed their rates significantly higher.

For 5-year fixes, NatWest again leads at 4.69%, with the gap between lenders widening considerably. Some borrowers may find the additional rate security worth the premium over 2-year deals.

The 10-year fix market is being led by Nationwide at 5.04%, though availability is becoming more limited as lenders pull back from longer-term products.

Tracker mortgage fans should look at Halifax's 3.96% rate, which remains unchanged from yesterday and offers excellent value at 21 basis points above the current 3.75% Bank of England base rate.

If you're considering a mortgage application, I'd strongly recommend getting your agreement in principle sorted quickly. With this level of volatility, rates that look attractive today may not be available tomorrow. Use our mortgage comparison tool to see current rates from all major lenders and speak to a broker about securing your rate before further increases hit.