Tuesday 31 March 2026: Four Major Lenders Hike Mortgage Rates - Here's What Changed

The mortgage market delivered a harsh reality check today, with four major lenders simultaneously pushing rates higher in what marks one of the most coordinated pricing moves we've seen this year. HSBC, Nationwide, Barclays, and NatWest all announced increases that will directly impact thousands of borrowers currently in the market.

HSBC Leads the Charge with Sweeping Increases

HSBC made the most dramatic moves, implementing increases across virtually every product line. The bank's residential mortgage rates saw substantial jumps, with their 2-year fixed deals rising by 40-60 basis points depending on the product. First-time buyers face particularly steep increases - their 2-year rate at 60% LTV jumped from 4.57% to 5.17%, a significant 60 basis point hike.

The pattern continues across different loan-to-value ratios. At 75% LTV, HSBC's first-time buyer 2-year rate moved from 4.64% to 5.24%, whilst their 5-year equivalent rose from 4.78% to 5.28% - both 50-60 basis point increases that will substantially impact monthly payments.

Buy-to-let investors weren't spared either. HSBC's BTL purchase rates at 60% LTV saw their 2-year option increase from 4.43% to 5.03% (60 basis points), whilst the 5-year rate moved from 4.18% to 4.78% (60 basis points). These increases extend across all LTV bands, with similar patterns at 65% and 75% LTV ratios.

International and Switching Customers Hit Hardest

HSBC's international mortgage products experienced some of the steepest increases. Their international purchase rates at 60% LTV saw 2-year deals rise from 4.98% to 5.58% (60 basis points), with 5-year rates climbing from 5.08% to 5.58% (50 basis points). The pattern continues at higher LTVs, with 75% LTV international deals now pricing at 5.65% for 2-year terms and 5.68% for 5-year terms.

Existing customers looking to borrow more or switch products also face higher costs. The "Borrowing More and Switching" category saw rates jump from 4.94% to 5.54% on 2-year deals at 60% LTV - a substantial 60 basis point increase that will give many borrowers pause for thought.

Nationwide Follows with Broad-Based Increases

Nationwide implemented more modest but still significant increases across their range. Their core home mover 2-year rate at 60% LTV increased from 4.25% to 4.55% (30 basis points), whilst the 5-year equivalent moved from 4.45% to 4.70% (25 basis points).

First-time buyers face larger increases from Nationwide. At 60% LTV, their 2-year rate rose from 4.55% to 4.85% (30 basis points), with the 5-year option jumping from 4.8% to 5.1% (30 basis points). These increases extend consistently across higher LTV ratios, with 75% and 80% LTV deals seeing similar percentage point increases.

At the higher end of the LTV spectrum, Nationwide's 95% LTV products saw more varied increases. Their first-time buyer 2-year rate at 95% LTV moved from 5.4% to 5.55% (15 basis points), whilst the 5-year equivalent increased by the same margin from 5.39% to 5.54%.

Barclays Makes Aggressive Moves

Barclays delivered some of today's most dramatic increases, with many products seeing rises exceeding 100 basis points. Their new purchase 2-year rate at 60% LTV jumped from 3.55% to 4.6% - a massive 105 basis point increase that represents one of the largest single-day moves we've tracked.

The pattern continues across their range. At 75% LTV, Barclays' new purchase 2-year rate rose from 3.78% to 4.66% (88 basis points), whilst their 5-year equivalent increased from 3.85% to 4.82% (97 basis points). Remortgage customers face similar increases, with their 75% LTV 2-year rate rising from 3.75% to 4.68% (93 basis points).

Higher LTV customers experienced somewhat smaller but still substantial increases. At 85% LTV, Barclays' new purchase 2-year rate moved from 4.08% to 4.73% (65 basis points), whilst their 5-year option jumped from 4.02% to 4.95% (93 basis points).

NatWest Rounds Out the Increases

NatWest implemented more measured increases, typically in the 28-38 basis point range. Their new purchase 2-year rate at 60% LTV rose from 4.52% to 4.8% (28 basis points), with the 5-year equivalent increasing from 4.69% to 4.97% (28 basis points).

Remortgage customers face slightly larger increases from NatWest. At 60% LTV, their 2-year remortgage rate jumped from 4.56% to 5.02% (46 basis points), whilst the 5-year option increased from 4.69% to 5.07% (38 basis points). The pattern continues at higher LTVs, with some 5-year remortgage deals seeing increases of up to 67 basis points.

Market Context and Implications

Today's coordinated increases suggest lenders are responding to underlying cost pressures, likely driven by recent movements in swap rates and funding costs. With the Bank of England base rate currently at 3.75%, these increases push many mortgage products well above 5%, representing a significant shift from the lower rate environment we've become accustomed to.

The current best rates in the market remain competitive, with Nationwide still offering 2-year deals from 4.55% and 5-year options from 4.7% at 60% LTV. However, today's moves suggest this landscape could shift rapidly if other lenders follow suit.

For borrowers currently in the market, these increases underscore the importance of acting quickly when suitable deals are available. The coordinated nature of today's moves suggests this isn't a temporary pricing adjustment but rather a reflection of broader market conditions that could persist.

Those with offers in principle should consider whether their rates remain valid, as many lenders reserve the right to reprice between application and completion. Similarly, borrowers approaching the end of their current deals should begin exploring options early, as the rate environment appears increasingly volatile.