Market Movements
HSBC Hikes Rates by 60bps Whilst Barclays Delivers Brutal Increases - 28 March 2026
HSBC increases rates by up to 60bp across their range whilst Barclays delivers shocking rises including a 219bp tracker jump. Nationwide and NatWest add more modest pressure in today's broadly upward market movement.
Major Lenders Deliver Significant Rate Rises
Today brings a mixed but predominantly upward shift in mortgage rates, with HSBC leading the charge with systematic increases across their entire product range, Barclays delivering some truly shocking jumps, and Nationwide applying more measured rises. The overall trend is clearly upward, though the magnitude varies dramatically between lenders.
HSBC's Comprehensive Rate Review
HSBC has implemented what appears to be a comprehensive repricing across their entire mortgage book. The bank has increased rates on virtually every product, with the scale of increases varying by customer type and loan-to-value ratio.
Existing Customers Feel the Pinch
HSBC's existing customers switching or borrowing more have seen relatively modest increases. Their residential switching products at 60% LTV rose from 4.29% to 4.69% on 2-year fixes (a 40bp increase) and from 4.40% to 4.70% on 5-year deals (30bp up). The tracker rate climbed 20bp from 4.09% to 4.29%.
Buy-to-let existing customers faced similar treatment, with 2-year rates at 60% LTV jumping from 4.19% to 4.59% (40bp) and 5-year fixes rising from 4.34% to 4.64% (30bp).
New Customers Hit Hardest
HSBC's new customers are bearing the brunt of these increases. First-time buyers and home movers at 60% LTV have seen substantial jumps. The 2-year fix for first-time buyers shot up from 4.57% to 5.17% - a painful 60bp increase. The 5-year equivalent rose 50bp from 4.68% to 5.18%.
Home movers faced similar treatment, with their 2-year rate climbing from 4.49% to 5.09% (60bp) and the 5-year option increasing from 4.52% to 5.02% (50bp).
Buy-to-Let Investors Not Spared
HSBC's buy-to-let purchase rates have also jumped significantly. At 60% LTV, the 2-year fix increased from 4.43% to 5.03% (60bp), though interestingly the 5-year rate rose even more dramatically from 4.18% to 4.78% - that's a substantial 60bp increase.
Higher LTV Products Follow Suit
The pattern continues across higher LTV bands. At 85% LTV, HSBC's first-time buyer rates now stand at 5.29% for 2-year fixes (up 60bp from 4.69%) and 5.37% for 5-year deals (up 50bp from 4.87%). Regular residential products at this LTV saw the standard first-time buyer 2-year rate jump from 4.83% to 5.43% - a hefty 60bp increase.
Barclays Delivers Shocking Increases
If HSBC's increases were concerning, Barclays' moves are genuinely alarming. The bank has implemented some of the most dramatic rate increases we've seen in recent months.
The 219bp Tracker Catastrophe
The most shocking move comes from Barclays' 75% LTV new purchase tracker, which has rocketed from 3.55% to an eye-watering 5.74% - that's a massive 219 basis point increase. This represents more than a 2% jump and will likely price many borrowers out of this product entirely.
Fixed Rates Also Surge
Barclays' fixed rate increases, whilst not quite as dramatic as that tracker, are still substantial. Their 60% LTV new purchase 2-year fix jumped from 3.55% to 4.60% (105bp), whilst the 5-year equivalent rose identically by 105bp from 3.75% to 4.80%.
Remortgage customers haven't been spared either. At 60% LTV, the 2-year fix climbed from 3.62% to 4.66% (104bp) and the 5-year rate jumped from 3.68% to 4.81% (113bp).
High LTV Borrowers Hit Hard
At 85% LTV, Barclays' new purchase rates show the same aggressive pricing. The 2-year fix rose from 4.08% to 4.73% (65bp) and the 5-year jumped from 4.02% to 4.95% (93bp). The tracker at this level increased from 4.02% to 4.85% - an 83bp rise.
Even their 95% LTV new purchase rates haven't escaped, with 2-year fixes up from 4.65% to 5.35% (70bp) and 5-year deals climbing from 4.58% to 5.36% (78bp).
Nationwide Takes a More Measured Approach
In contrast to the dramatic moves from HSBC and Barclays, Nationwide has implemented more modest increases across their range, though these are still significant for borrowers.
Standard Increases Across the Board
Nationwide's approach appears more systematic and measured. At 60% LTV, their home mover rates increased by 30bp on 2-year fixes (from 4.25% to 4.55%) and 25bp on 5-year deals (from 4.45% to 4.70%). Their first-time buyer products saw similar treatment with 30bp increases on both 2-year (4.55% to 4.85%) and 5-year fixes (4.80% to 5.10%).
Rate Switch Products Rise Too
Even Nationwide's rate switch products - traditionally offering some of their keenest pricing for existing customers - have increased. At 60% LTV, the 2-year option rose from 4.09% to 4.34% (25bp) and the 5-year from 4.24% to 4.49% (25bp).
High LTV Products Follow Pattern
The pattern continues at higher LTVs. At 95% LTV, Nationwide's first-time buyer 2-year rate climbed from 5.40% to 5.55% (15bp), whilst the 5-year option rose just 15bp from 5.39% to 5.54%. These are more modest increases compared to the carnage elsewhere.
NatWest Adds Modest Pressure
NatWest has also joined the upward trend, though their increases are more restrained than some competitors. At 60% LTV, their new purchase 2-year fix rose from 4.15% to 4.52% (37bp) and the 5-year climbed from 4.38% to 4.69% (31bp).
Remortgage rates saw larger increases, with the 2-year fix jumping from 4.17% to 4.74% (57bp) and the 5-year rising from 4.40% to 4.79% (39bp).
Market Implications
These widespread increases suggest lenders are responding to several factors simultaneously. With the Bank of England base rate at 3.75%, the margin compression we've seen over recent months was clearly unsustainable for many lenders.
The scale of Barclays' increases in particular suggests they may have been pricing too aggressively and are now correcting course dramatically. HSBC's systematic approach indicates a more measured repositioning of their entire range.
For borrowers, these moves significantly reduce choice in the most competitive rate bands. Those looking to compare mortgages will find fewer sub-4.50% options than were available just days ago.
What This Means for Borrowers
Anyone with applications in progress with these lenders should check immediately whether their rate is still available. Most lenders honour rates for a limited period after application, but these increases may prompt faster processing or product withdrawals.
The breadth of increases today suggests this isn't isolated repositioning by individual lenders, but rather a broader market recalibration. Borrowers who have been waiting for rates to fall further may need to reconsider their strategy.
Those currently on standard variable rates or coming to the end of fixed deals should act quickly, as the trend appears firmly upward across multiple lenders. The window for securing rates in the low-4% range is clearly narrowing.
Frequently Asked Questions
Why has Barclays increased their tracker rate by 219 basis points?
Barclays' 219bp tracker increase from 3.55% to 5.74% on their 75% LTV new purchase product suggests they were pricing far too aggressively and are now making a dramatic correction. This level of increase indicates the previous rate was unsustainable given current market conditions and funding costs.
Are HSBC's 60bp increases applied across all their mortgage products?
HSBC has increased rates across their entire range, but the scale varies. New customers (first-time buyers, home movers, new purchases) have seen 50-60bp increases, whilst existing customers switching or borrowing more face smaller 30-40bp rises. Buy-to-let products have seen similar patterns with some 5-year rates increasing by 60bp.
Should I rush to submit a mortgage application after these rate increases?
If you were considering an application with any of these lenders, you should act quickly. However, check first whether better rates are available elsewhere. The widespread nature of today's increases suggests this may be a broader market trend, so securing a competitive rate sooner rather than later would be wise.
Will other lenders follow with similar rate increases?
The fact that four major lenders have all increased rates simultaneously suggests this reflects broader market pressures rather than individual lender strategies. Other lenders may well follow suit, particularly if funding costs or regulatory capital requirements are driving these changes across the sector.
Are there still competitive mortgage rates available after today's increases?
Yes, but the options are more limited. NatWest currently offers the best 2-year fix at 4.52%, whilst their 5-year rate of 4.69% also leads the market. However, with multiple lenders increasing rates today, borrowers should expect continued upward pressure across the market.