Rate Watch Friday 3 April 2026: Mortgage Market Takes Easter Breather

Quiet Friday as Lenders Hold Fire

After a week of notable activity from major lenders, the mortgage market has taken a breather today with no rate changes announced. This pause gives borrowers a chance to digest the significant moves we've seen from key players over the past week.

The calm doesn't mean inaction though. HSBC made substantial increases a week ago, while Nationwide and NatWest have both adjusted their offerings more recently. Let's break down what these changes mean for different types of borrowers.

HSBC's Substantial Rate Increases Still Rippling Through Market

The biggest story remains HSBC's comprehensive rate increases from 27 March. The bank pushed up rates across virtually every product line, with particularly sharp rises for new customers.

First-time buyers felt the biggest impact. HSBC's 2-year fixes jumped by 60 basis points across all LTV bands, meaning a 60% LTV mortgage rose from 4.57% to 5.17%. At higher LTVs, the pain intensifies – the 85% LTV option climbed from 4.83% to 5.43%.

Home movers fared slightly better on some products. While 2-year rates still increased by 60 basis points, 5-year fixes saw smaller rises of 50 basis points. This created some interesting pricing dynamics – HSBC's 5-year fix at 60% LTV actually undercuts the 2-year equivalent at 5.02% versus 5.09%.

The remortgage market saw even steeper increases. HSBC's 90% LTV remortgage products jumped dramatically – the 2-year fix rose 60 basis points from 5.19% to 5.79%. That's now among the highest rates in the market for high-LTV remortgaging.

BTL Investors Face Mixed Picture at HSBC

Buy-to-let investors saw varied treatment from HSBC. Standard BTL purchase rates increased by 60 basis points on 2-year fixes but only 50 basis points on 5-year products. However, the Energy Efficient range actually saw some 5-year rates rise by 60 basis points, creating pricing inconsistencies within HSBC's own range.

Nationwide's Measured Response

Just two days ago, Nationwide took a more measured approach to rate adjustments. The building society increased rates across the board, but by smaller margins than HSBC's dramatic moves.

Most of Nationwide's increases clustered around 10-25 basis points. The 60% LTV home mover 2-year fix rose from 4.55% to 4.71% – a 16 basis point increase that keeps the rate competitive. Similarly, the 5-year equivalent went from 4.70% to 4.85%, maintaining Nationwide's position near the top of our best rate tables.

First-time buyers saw slightly larger increases, with some 90% LTV products rising by 15-25 basis points. The 2-year fix at this LTV moved from 5.15% to 5.30%, while the 5-year option increased more substantially from 5.25% to 5.50%.

Nationwide's Remortgage Rates Edge Higher

Nationwide's remortgage adjustments followed similar patterns. Lower LTV products saw modest 10-16 basis point increases, while higher LTV options faced steeper rises. The 90% LTV 2-year remortgage fix jumped from 5.01% to 5.26% – a 25 basis point increase that reflects growing caution around high-LTV lending.

NatWest Makes Significant Moves

Three days ago, NatWest implemented some of the sharpest rate increases we've seen recently. The bank's adjustments were particularly pronounced in the remortgage sector, where some products rose by nearly 70 basis points.

NatWest's 75% LTV 5-year remortgage fix jumped from 4.74% to 5.41% – a massive 67 basis point increase that pushes the rate well above market averages. Even lower LTV remortgage products faced substantial rises, with the 60% LTV 2-year fix climbing from 4.56% to 5.02%.

Purchase rates also increased significantly. The 60% LTV 2-year purchase fix rose from 4.52% to 4.80%, while tracker rates across the range increased by 28 basis points. These moves reflect NatWest's apparent desire to slow new lending volumes.

Market Context and Base Rate Impact

With the Bank of England base rate holding steady at 3.75%, these lender moves reflect internal capacity management rather than broader economic pressures. The pattern suggests lenders are becoming more selective about new business, particularly at higher LTVs where risk concerns are growing.

Current market leaders paint an interesting picture. Nationwide continues to offer some of the most competitive rates, with their 60% LTV home mover 2-year fix at 4.71% representing excellent value. The building society's 5-year equivalent at 4.85% also remains highly competitive.

What This Means for Borrowers

The varied approach from different lenders creates opportunities for savvy borrowers. While HSBC has moved rates sharply higher, other lenders haven't followed suit to the same degree.

First-time buyers should focus on lenders that haven't made dramatic recent increases. Nationwide's rates remain competitive despite recent rises, and other major lenders haven't moved as aggressively.

Remortgage customers face a more challenging environment. The sharp increases from both HSBC and NatWest in this sector suggest lenders are being particularly cautious about refinancing business. Shopping around becomes even more crucial.

The lack of changes today provides a brief window of stability, but borrowers shouldn't assume this will last. The pattern of recent weeks suggests further adjustments are likely as lenders continue managing their lending volumes.

Looking Ahead

With several major lenders having made significant moves recently, attention turns to those that haven't yet adjusted rates substantially. The mortgage market's recent volatility suggests borrowers should act quickly when they find suitable rates, as the stability we're seeing today may be temporary.

The next few weeks will be crucial in determining whether other lenders follow the lead of HSBC and NatWest with substantial increases, or whether the more measured approach taken by Nationwide becomes the market norm.