Sunday 29 March Rate Watch: HSBC Hikes by 60bp While Nationwide and Barclays Make Smaller Moves

Sunday brought a mixed bag of mortgage rate changes, with HSBC leading the charge with significant increases across their entire product range, while Nationwide and Barclays made more measured adjustments. The overall market trend today is distinctly upward, with borrowers facing higher costs across most product categories.

HSBC's Dramatic Rate Surge

HSBC has implemented the most substantial changes we've tracked today, with rate increases ranging from 15 basis points to a whopping 60 basis points across their mortgage portfolio. The most striking moves came in their new purchase products, where first-time buyers and home movers faced identical 60bp increases on 2-year fixes and 50bp rises on 5-year deals.

For first-time buyers at 60% LTV, HSBC's 2-year fixed rate jumped from 4.57% to 5.17% (+60bp), whilst their 5-year fix climbed from 4.68% to 5.18% (+50bp). Home movers at the same LTV band saw their 2-year rate increase from 4.49% to 5.09% (+60bp) and 5-year from 4.52% to 5.02% (+50bp).

The pain wasn't limited to lower LTV borrowers. At 90% LTV, first-time buyers now face 5.29% on 2-year fixes (up from 4.69%, +60bp) and 5.37% on 5-year deals (up from 4.87%, +50bp). Home movers at 95% LTV weren't spared either, with their 2-year rate rising to 5.27% from 4.67% (+60bp).

HSBC's Buy-to-Let Market Feels the Heat

HSBC's buy-to-let products experienced similarly sharp increases. Purchase BTL rates at 60% LTV saw both 2-year and 5-year fixes rise by 60bp, with the 2-year now at 5.03% (previously 4.43%) and the 5-year at 4.78% (previously 4.18%). Even BTL remortgage products weren't immune, with 2-year fixes climbing 60bp across most LTV bands.

Existing HSBC customers switching or borrowing more received slightly better treatment, with increases typically ranging from 15bp to 40bp, though these customers are still facing higher costs than before.

Nationwide Takes a Measured Approach

Nationwide's rate adjustments were more restrained but still universally upward. The building society increased rates across all product categories, with most 2-year fixes rising by 20-30bp and 5-year products seeing 20-30bp increases.

At 60% LTV, Nationwide's home mover 2-year fix increased from 4.25% to 4.55% (+30bp), whilst their 5-year option rose from 4.45% to 4.70% (+25bp). First-time buyers at the same LTV band now face 4.85% on 2-year deals (up from 4.55%, +30bp) and 5.10% on 5-year fixes (up from 4.80%, +30bp).

Higher LTV borrowers saw similar patterns. At 95% LTV, first-time buyers experienced a 15bp increase on 2-year fixes to 5.55% (from 5.40%) and a 15bp rise on 5-year deals to 5.54% (from 5.39%).

Notably, many of Nationwide's tracker rates remained unchanged, providing some stability in an otherwise rising rate environment.

Barclays Makes Substantial Upward Adjustments

Barclays delivered some of the most dramatic single rate increases we've seen, with several products jumping over 100 basis points. Their new purchase 2-year fix at 60% LTV soared from 3.55% to 4.60% - a massive 105bp increase. The 5-year equivalent rose by the same margin, from 3.75% to 4.80%.

At 75% LTV, Barclays new purchase customers face 2-year rates of 4.66% (up from 3.78%, +88bp) and 5-year rates of 4.82% (up from 3.85%, +97bp). Even their 10-year fix at 60% LTV jumped significantly, from 4.72% to 5.35% (+63bp).

Remortgage customers weren't spared, with 2-year fixes at 60% LTV increasing from 3.62% to 4.66% (+104bp) and 5-year deals rising from 3.68% to 4.81% (+113bp).

NatWest's Smaller but Consistent Increases

NatWest rounded out today's changes with more modest but consistent rate rises. Their new purchase 2-year fix at 60% LTV increased from 4.15% to 4.52% (+37bp), whilst the 5-year equivalent rose from 4.38% to 4.69% (+31bp).

At higher LTV levels, the increases were smaller. The 85% LTV new purchase 2-year fix rose just 22bp to 4.84% (from 4.62%), while the 5-year deal increased 13bp to 4.88% (from 4.75%).

Interestingly, some NatWest products showed no change at all - their 90% LTV new purchase 2-year rate remained at 4.90%.

What This Means for Borrowers

Today's changes represent a significant shift upward in mortgage pricing, with HSBC leading the charge and other major lenders following suit. The scale of some increases - particularly HSBC's 60bp jumps and Barclays' triple-digit rises - suggests lenders are responding to changed funding costs or risk appetites.

Current best rates across the market now stand at 4.52% for 2-year fixes (NatWest), 4.69% for 5-year deals (also NatWest), 5.04% for 10-year products (Nationwide), and 3.96% for tracker mortgages (Halifax). With the Bank of England base rate at 3.75%, the margin between base rate and mortgage rates continues to widen.

For borrowers currently in the market, these changes underscore the importance of acting quickly when you find a competitive rate. Those coming to the end of fixed-rate deals should consider speaking to a mortgage broker about their options sooner rather than later.

If you're comparing rates, our mortgage comparison tool can help you find the best deals available. For the latest updates on Bank of England base rate movements, check our base rate tracker.