Major Rate Shock: HSBC, Barclays & NatWest Hike Rates by Up to 128 Basis Points - 28 March 2026

Saturday brought a wave of significant mortgage rate increases across three major lenders, with some of the sharpest rises we've seen this year. HSBC led the charge with systematic increases across their entire range, while Barclays delivered some eye-watering jumps of over 100 basis points on selected products. NatWest rounded out the day with more measured but still substantial increases.

HSBC's Comprehensive Rate Restructure

HSBC implemented widespread increases across virtually every product in their range, affecting both residential and buy-to-let mortgages. The pattern was consistent: new purchase rates rose by 60 basis points, existing customer rates increased by 30-40 basis points, and tracker rates climbed by 15-20 basis points.

For first-time buyers at 60% LTV, HSBC's 2-year fixed rate jumped from 4.57% to 5.17% - a substantial 60 basis point increase. Their 5-year equivalent rose from 4.68% to 5.18%, representing a 50 basis point hike. These moves push HSBC well above the current market leaders, with NatWest now offering the most competitive 2-year rate at 4.52%.

The increases weren't limited to residential mortgages. HSBC's buy-to-let purchase rates saw similar treatment, with their 2-year BTL rate at 60% LTV rising from 4.43% to 5.03% - again, that significant 60 basis point jump. This aggressive repricing suggests HSBC may be managing lending volumes or responding to funding cost pressures.

Existing customers weren't spared entirely, though they received more modest treatment. HSBC's existing customer switching products saw increases of 40 basis points on 2-year terms and 30 basis points on 5-year deals. For someone currently on HSBC's books looking to remortgage, their 2-year rate at 60% LTV moved from 4.29% to 4.69%.

Barclays Delivers Market's Biggest Shocks

While HSBC's moves were systematic, Barclays delivered the day's most dramatic individual rate changes. Their existing customer switching product at 60% LTV saw the 2-year rate rocket from 3.52% to 4.80% - an enormous 128 basis point increase that represents the largest single move we've tracked.

The 5-year equivalent wasn't far behind, jumping from 3.62% to 4.71%, a 109 basis point increase. These moves are particularly striking because they affect existing customers who might have been expecting preferential treatment.

For new purchase customers, Barclays implemented more measured but still substantial increases. Their 2-year rate at 60% LTV rose from 3.55% to 4.60% (105 basis points), while the 5-year term climbed from 3.75% to 4.80% (also 105 basis points). The 10-year rate increased from 4.72% to 5.35%, adding 63 basis points.

At higher LTV bands, Barclays continued this aggressive repricing. Their 75% LTV remortgage products saw the 2-year rate increase from 3.75% to 4.68% (93 basis points) and the 5-year from 3.75% to 4.84% (109 basis points).

What's particularly concerning for borrowers is how these moves have eliminated many of Barclays' previously competitive rates. Products that were among the market's best deals just days ago now sit well above current market leaders.

NatWest Takes a More Conservative Approach

NatWest's increases were more restrained but still significant across their range. Their 2-year purchase rate at 60% LTV rose from 4.15% to 4.52% (37 basis points), while their 5-year equivalent increased from 4.38% to 4.69% (31 basis points).

Interestingly, despite these increases, NatWest now finds itself with some of the market's most competitive rates. Their 2-year rate of 4.52% at 60% LTV now represents the best available rate according to our tracking, while their 5-year rate of 4.69% ties for the market lead with HSBC's existing customer rates.

NatWest's remortgage products saw slightly larger increases. The 2-year rate at 60% LTV jumped from 4.17% to 4.56% (39 basis points), though this still leaves them competitive. At 75% LTV, their purchase rates increased by 37 basis points on 2-year terms and 28 basis points on 5-year deals.

Higher LTV bands saw more modest increases from NatWest, suggesting they're still keen to compete in the higher-risk lending space where margins are typically better.

Nationwide's Earlier Moves Complete the Picture

While not moving rates on Saturday, Nationwide's increases from earlier in the week provide important context. Their systematic 20-30 basis point increases across most products show this rate-rising trend has been building momentum throughout the week.

Nationwide's current rates remain competitive, with their 10-year fixed at 5.04% representing the best available long-term rate. Their tracker products also remain attractive, particularly for existing customers where rates start from 3.99%.

Market Implications and Outlook

Today's moves represent a clear shift in lender sentiment, with three major banks implementing significant increases simultaneously. The scale of some increases - particularly Barclays' triple-digit basis point jumps - suggests these aren't just minor adjustments but fundamental repricing decisions.

Several factors likely drove these moves. Swap rates have been under pressure recently, funding costs remain elevated, and lenders may be managing their lending pipelines ahead of the spring buying season. The Bank of England's base rate remains at 3.75%, but market expectations for future moves continue to evolve.

For borrowers currently in the market, these changes highlight the importance of acting quickly when good deals are available. The gap between the best and worst rates has widened significantly, making careful comparison more crucial than ever.

Those with applications already in progress should check whether their rates remain valid. Most lenders offer rate guarantees for 3-6 months from application, but it's worth confirming your position if you've been waiting for completion.

Looking ahead, the mortgage market appears to be entering a more volatile phase. While some lenders have pushed rates higher, this creates opportunities for competitors to gain market share with more aggressive pricing. We'd expect to see counter-moves in the coming days as lenders respond to today's changes.

The current market leaders offer 2-year rates from 4.52% and 5-year rates from 4.69%, but with such rapid changes occurring, borrowers should use our mortgage comparison tool to check the latest rates before making any decisions.