Market Movements
Major Rate Shakeup: HSBC, Nationwide, Barclays & NatWest Hike Rates Across the Board - 31 March 2026
Four major lenders delivered substantial rate increases today, with Barclays leading dramatic 128bp rises and HSBC implementing systematic 50-60bp increases across their range. The coordinated moves suggest significant market-wide repricing.
Widespread Rate Increases Mark End of March
Today brought a coordinated wave of mortgage rate increases across Britain's biggest lenders, with no major institution left untouched. The scale of today's moves suggests lenders are responding decisively to recent market pressures, with some increases reaching well over 1% in a single day.
HSBC Implements Sweeping 15-60 Basis Point Increases
HSBC led the charge with comprehensive rate adjustments spanning their entire residential and buy-to-let portfolio. The bank's existing customer switching products saw particularly sharp increases, with their 2-year fixed rate jumping from 4.94% to 5.54% - a substantial 60 basis point rise.
First-time buyers face notably higher costs, with HSBC's 2-year fixed rates at 60% LTV climbing from 4.57% to 5.17% (60bps increase), while 5-year fixes rose from 4.68% to 5.18% (50bps). Energy efficient mortgages, typically offering preferential pricing, saw identical increases, suggesting market conditions are overriding previous green incentives.
Home movers weren't spared either. At 70% LTV, HSBC's 2-year fixed rates increased from 4.59% to 5.19% (60bps), with 5-year fixes rising from 4.57% to 5.07% (50bps). The pattern continues across higher LTV bands, with 90% LTV remortgage rates hitting particularly hard - 2-year fixes now sit at 5.79%, up from 5.19% (60bps).
Buy-to-let investors face similar pressures. HSBC's BTL purchase rates at 60% LTV rose from 4.43% to 5.03% for 2-year fixes (60bps), while 5-year rates climbed from 4.18% to 4.78% (60bps). International BTL products saw even steeper increases, with rates moving from 4.94% to 5.54% on 2-year terms.
Barclays Delivers Shock Triple-Digit Increases
Barclays stunned the market with increases reaching 128 basis points - the largest single-day moves we've tracked. Their existing customer switching 2-year rate at 60% LTV soared from 3.52% to 4.80%, representing an extraordinary 128 basis point jump.
New purchase rates saw substantial increases across all LTV bands. At 60% LTV, 2-year fixes rose from 3.55% to 4.60% (105bps), while 5-year rates climbed from 3.75% to 4.80% (105bps). The 10-year fixed rate increased from 4.72% to 5.35% (63bps).
Higher LTV bands experienced similarly dramatic moves. At 75% LTV, Barclays' new purchase 2-year rate jumped from 3.78% to 4.66% (88bps), with tracker rates rising from 3.55% to 4.11% (56bps). Remortgage customers at 80% LTV now face rates of 5.04% on 2-year terms, up from 3.95% (109bps).
First-time buyers at 95% LTV face particularly steep increases, with 2-year rates climbing from 4.65% to 5.35% (70bps) and 5-year fixes rising from 4.58% to 5.36% (78bps).
Nationwide Adds Modest but Consistent Increases
Nationwide took a more measured approach, implementing increases of 10-30 basis points across their range. Their best 2-year fixed rate at 60% LTV for home movers rose from 4.25% to 4.55% (30bps), while the equivalent 5-year rate increased from 4.45% to 4.70% (25bps).
Rate switch customers - existing Nationwide borrowers seeking new deals - saw smaller increases. At 60% LTV, their 2-year rate rose from 4.09% to 4.34% (25bps), with 5-year fixes climbing from 4.24% to 4.49% (25bps).
High LTV borrowers face steeper costs. At 95% LTV, first-time buyer rates increased from 5.40% to 5.55% (15bps) for 2-year fixes, while 5-year rates remained more stable with a 15bps increase to 5.54%.
NatWest Rounds Out Universal Increases
NatWest completed the quartet of major lender increases with moves ranging from 23-67 basis points. New purchase rates at 60% LTV saw 28 basis point increases across 2-year (4.52% to 4.80%) and 5-year (4.69% to 4.97%) fixed terms.
Remortgage customers face steeper increases. At 75% LTV, NatWest's 5-year remortgage rate jumped from 4.74% to 5.41% - a substantial 67 basis point increase. Higher LTV remortgage rates also saw significant moves, with 80% LTV 2-year fixes rising from 4.99% to 5.37% (38bps).
Market Implications and Borrower Impact
Today's coordinated increases suggest lenders are responding to sustained pressure in funding markets. With the Bank of England base rate holding at 3.75%, these mortgage rate increases indicate swap rate movements and funding cost pressures rather than immediate base rate expectations.
The severity of Barclays' increases - some exceeding 1% in a single day - points to potential repricing of risk or catch-up moves after being competitively positioned. Meanwhile, HSBC's systematic 50-60 basis point increases across most products suggest a deliberate recalibration of their entire rate card.
Current market leaders have shifted following today's moves. Comparing mortgages across today's new rates, Nationwide now offers the most competitive 2-year fixed rate at 4.55% (60% LTV, £999 fee), while their 5-year rate of 4.70% also leads the market.
For borrowers with applications in progress, these increases highlight the importance of rate locks and quick decision-making. Those considering remortgaging should reassess their timeline, as further increases could follow if market conditions continue deteriorating.
Product removal risk has also increased significantly. When lenders implement increases of this magnitude, complete product withdrawals often follow as they reassess appetite for new lending at different LTV levels.
Looking Ahead
The breadth of today's increases - spanning four major lenders and affecting virtually every product type - suggests this isn't isolated repricing but a market-wide reset. Borrowers should expect continued volatility and consider securing rates quickly if their circumstances allow.
The scale of Barclays' increases may force competitors to follow with additional rises, particularly if funding costs continue climbing. Those currently on variable rates should prioritise securing fixed-rate deals before potential further increases.
Frequently Asked Questions
Why did mortgage rates increase so dramatically today across multiple lenders?
Today's increases suggest coordinated responses to funding market pressures rather than base rate changes. When multiple major lenders move simultaneously with substantial increases (Barclays up to 128bps, HSBC up to 60bps), it typically indicates rising swap rates or increased funding costs affecting the entire market.
Which lender offers the best rates after today's increases?
Following today's changes, Nationwide now leads with 2-year fixed rates from 4.55% and 5-year fixes from 4.70% (both at 60% LTV with £999 fee). However, given the scale of today's moves, these rates could change quickly as lenders continue adjusting their pricing.
Should I expect my mortgage application rate to change if I applied before today?
This depends on your lender's rate guarantee policy. Most lenders honour rates for 6 months from application, but some may apply new rates if your case hasn't yet been offered. Contact your broker or lender immediately to confirm your rate is protected, especially given increases up to 128bps today.
Are these rate increases likely to continue, or is this a one-off adjustment?
The breadth of today's increases across four major lenders suggests market-wide repricing rather than isolated moves. When Barclays increases rates by over 1% in a single day, it often signals broader market stress that could prompt further increases from other lenders in coming days.
How do today's rate increases affect buy-to-let investors specifically?
BTL rates saw significant increases, with HSBC's purchase rates at 60% LTV rising 60bps to 5.03% for 2-year terms. International BTL products faced even steeper rises (up to 60bps). Investors should reassess project viability quickly, as rental yields may no longer support higher borrowing costs at these new rate levels.