Major Rate Hikes Hit the Mortgage Market - 3 April 2026 Rate Roundup

The mortgage market experienced a significant shake-up today, with HSBC delivering substantial rate increases across their entire product range while NatWest followed suit with notable hikes of their own. Meanwhile, Nationwide opted for more measured adjustments, creating a mixed picture for borrowers shopping around.

HSBC's Aggressive Rate Increases

HSBC has implemented the most dramatic changes, with increases spanning all loan-to-value ratios and product types. The bank's existing customer products saw relatively modest increases of 15-40 basis points, but new business rates jumped by a substantial 50-60 basis points across the board.

For residential mortgages, HSBC's 2-year fixed rates now start at 4.69% (up from 4.29%) for existing customers at 60% LTV, while first-time buyers face rates of 5.17% (up from 4.57%) - a hefty 60 basis point increase. The 5-year fixed rates tell a similar story, with existing customers seeing increases from 4.40% to 4.70%, and first-time buyers jumping from 4.68% to 5.18%.

The bank's 10-year fixed rates, where available, have also risen significantly. At 60% LTV, these products increased from 4.84% to 5.24% for existing customers - a 40 basis point jump that will impact borrowers seeking long-term rate certainty.

HSBC's tracker mortgages haven't escaped the increases either. Existing customer trackers at 60% LTV rose from 4.09% to 4.29%, while new business tracker rates increased from 4.19% to 4.39% - both representing 20 basis point increases.

Buy-to-Let Market Hit Hard

The buy-to-let sector has been particularly affected by HSBC's repricing. Purchase BTL rates at 60% LTV jumped dramatically - the 2-year fixed rate increased from 4.43% to 5.03%, while the 5-year fixed climbed from 4.18% to 4.78%. These 60 basis point increases represent some of the largest single-day moves we've seen in the BTL market this year.

International BTL products faced even steeper increases. At 60% LTV, the 2-year fixed rate rose from 4.94% to 5.54%, while the 5-year fixed increased from 4.99% to 5.49% - both 50-60 basis point jumps that will significantly impact international investors.

NatWest's Strategic Adjustments

NatWest has also implemented notable rate increases, though their approach appears more targeted than HSBC's across-the-board strategy. The bank's 2-year fixed rates for new purchases increased by 28 basis points across all LTV bands.

At 60% LTV, NatWest's new purchase 2-year rate rose from 4.52% to 4.80%, while the 5-year equivalent increased from 4.69% to 4.97%. The pattern continues up the LTV scale, with 90% LTV purchases seeing 2-year rates increase from 4.90% to 5.18%.

The bank's remortgage products experienced even larger increases. At 60% LTV, the 2-year remortgage rate jumped from 4.56% to 5.02% - a significant 46 basis point increase. The 5-year remortgage rate rose from 4.69% to 5.07%, representing a 38 basis point jump.

Tracker mortgages from NatWest also saw substantial increases of 28-38 basis points across the range, with the 60% LTV tracker rising from 4.19% to 4.47%.

Nationwide's Measured Response

In contrast to the dramatic moves from HSBC and NatWest, Nationwide has implemented more modest adjustments across their product range. The building society's rate increases have been more measured, with most products seeing increases of 10-25 basis points.

Nationwide's 2-year fixed rates for home movers at 60% LTV increased from 4.55% to 4.71% - a 16 basis point rise. Their 5-year equivalents rose from 4.70% to 4.85%, representing a 15 basis point increase. These changes, while still upward, are significantly smaller than those implemented by the major banks.

The society's first-time buyer products saw similar modest increases. At 60% LTV, the 2-year rate rose from 4.85% to 5.00% (15 basis points), while the 5-year rate increased from 5.10% to 5.25% (also 15 basis points).

Nationwide's rate switch products - designed for existing borrowers - experienced the largest increases within their range, with some 2-year products rising by 20-25 basis points. However, these increases remain well below the dramatic moves seen elsewhere in the market.

Market Analysis and Implications

Today's rate changes reflect a broadly upward trend in mortgage pricing, with lenders responding to various market pressures. The increases come despite the Bank of England base rate remaining steady at 3.75%, suggesting that funding costs and risk appetite are the primary drivers behind these moves.

The scale of HSBC's increases is particularly noteworthy, as it suggests the bank may be managing lending volumes or responding to specific funding cost pressures. The 50-60 basis point increases for new business represent some of the largest single-day moves we've tracked this year.

NatWest's strategy appears more nuanced, with larger increases applied to remortgage products than new purchases. This could indicate different competitive pressures in these market segments or varying profitability considerations.

Nationwide's restrained approach reinforces their position as a more borrower-friendly option in the current market. Their rates now offer some of the most competitive options available, with 2-year fixed rates starting at 4.59% for existing customer rate switches at 60% LTV.

Current Market Leaders

Following today's changes, the competitive landscape has shifted significantly. Nationwide now holds some of the best rates in the market, with their 2-year fixed rate of 4.71% for home movers at 60% LTV representing strong value in the current environment.

For borrowers seeking 5-year fixed rates, Nationwide's 4.85% rate (also for home movers at 60% LTV) stands out as particularly competitive following the increases elsewhere. The 10-year fixed market sees Nationwide offering 5.19% rates, providing good value for those seeking longer-term certainty.

The tracker mortgage market remains dominated by Halifax at 3.96%, though this rate wasn't updated today and may face pressure in coming sessions given the broader upward trend.

Borrower Implications

For borrowers currently in the market, today's changes highlight the importance of acting quickly when competitive rates are identified. The scale of increases, particularly from HSBC, demonstrates how rapidly the landscape can shift.

Existing HSBC customers considering remortgaging have been somewhat protected by smaller rate increases, but new borrowers face significantly higher costs. This creates a clear incentive for existing customers to remain with the bank, while new customers may find better value elsewhere.

Those considering mortgage comparison should note that Nationwide's restrained pricing makes them increasingly competitive, particularly for borrowers with good credit profiles and substantial deposits.

The buy-to-let market has been particularly affected by today's changes, with HSBC's increases making alternative lenders more attractive for property investors. The international BTL market faces even greater challenges, with rate increases of 50-60 basis points significantly impacting investment returns.