Rate Rises Continue as HSBC and Nationwide Push Mortgage Rates Higher - 4 April 2026

No lenders updated their mortgage rates today, but this weekend follows another week of rate increases across the UK mortgage market. Major lenders including HSBC and Nationwide have pushed rates higher over the past week, continuing the upward trend we've seen throughout 2026.

HSBC Implements Significant Rate Increases

HSBC made substantial changes to their mortgage range on 27 March, with increases affecting all customer types and loan-to-value ratios. The bank increased their 2-year fixed rates by 60 basis points and 5-year deals by 50 basis points across most products.

For first-time buyers, HSBC's 2-year rates now start at 5.17% at 60% LTV (up from 4.57%), while their 5-year deals begin at 5.18% (up from 4.68%). At higher LTVs, the impact is even more pronounced - their 85% LTV first-time buyer rate jumped to 5.43% for 2-year fixes, representing a significant 60 basis point increase.

Home movers saw similar increases, with 60% LTV 2-year rates rising to 5.09% and 5-year deals to 5.02%. Interestingly, HSBC's 5-year rates are now pricing below their 2-year equivalents at lower LTVs, suggesting the bank expects rates to fall over the medium term.

Remortgage customers face the steepest pricing, particularly at higher LTVs. HSBC's 90% LTV remortgage rates now reach 5.79% for 2-year deals and 5.54% for 5-year terms - increases of 60 and 50 basis points respectively.

Nationwide Raises Rates Across All Products

Nationwide followed suit on 1 April with increases affecting their entire mortgage range. The building society's changes were more modest than HSBC's but still significant across all customer segments.

First-time buyers now face rates starting at 5.00% for 2-year deals at 60% LTV (up from 4.85%) and 5.25% for 5-year terms (up from 5.10%). At 95% LTV, Nationwide's first-time buyer rates reached 5.63% for 2-year deals and 5.69% for 5-year terms.

Home movers saw their 60% LTV rates increase to 4.71% for 2-year deals and 4.85% for 5-year terms. Despite the increases, Nationwide currently offers some of the best rates in the market at lower LTVs.

The building society's existing customer deals remain competitive, with rate switch products starting at 4.59% for 2-year deals at 60% LTV, though these still increased by 25 basis points.

NatWest Implements Selective Rate Changes

NatWest updated their rates on 31 March, with increases varying significantly by product type and LTV band. Their remortgage rates saw the largest increases, with some products rising by up to 67 basis points.

New purchase rates increased more moderately, with 60% LTV 2-year deals rising to 4.80% (up 28 basis points) and 5-year rates reaching 4.97% (up 28 basis points). However, remortgage customers faced steeper increases, with 75% LTV 5-year deals jumping to 5.41% - a substantial 67 basis point increase.

The bank's tracker rates also increased significantly, with some products seeing 38 basis point rises. This reflects lenders' expectations that the Bank of England base rate may need to remain higher for longer than previously anticipated.

Market Trends and Analysis

The recent rate increases reflect several factors affecting the mortgage market. Swap rates - the wholesale funding costs that determine fixed mortgage rates - have risen significantly in recent weeks. This has forced lenders to reprice their products to maintain margins.

The current best rates across the market show Nationwide leading on longer-term deals, with 2-year rates from 4.71% and 5-year rates from 4.85% at 60% LTV. For tracker mortgages, Halifax currently offers the lowest rate at 3.96%.

Buy-to-let investors face higher rates across all lenders, with HSBC's BTL rates starting at 5.03% for 2-year deals at 60% LTV. The buy-to-let market has seen consistent upward pressure as lenders price in additional regulatory costs and higher risk premiums.

What This Means for Borrowers

Current mortgage holders approaching the end of their deals should act quickly. The gap between new customer rates and existing customer products is narrowing, but switching early can still save money. Many lenders offer rate reservation periods of up to six months, allowing borrowers to secure current pricing even if their mortgage doesn't expire immediately.

First-time buyers face the most challenging conditions, with 95% LTV rates now exceeding 5.60% with most lenders. The higher rates, combined with ongoing affordability assessments, are making homeownership increasingly difficult for many prospective buyers.

Those considering remortgaging should compare rates across multiple lenders, as pricing varies significantly. Some lenders are offering better deals to attract new customers, while others are focusing on retaining existing borrowers through competitive rate switch products.

Looking Ahead

With several major lenders yet to update their rates this week, we may see further changes next week. Halifax and Lloyds both updated their rates yesterday, while Santander hasn't changed their pricing since 29 March.

The market expects continued volatility as lenders balance the need to attract new business with maintaining profitability. Borrowers should monitor rates closely and consider acting quickly when suitable deals become available, as the current environment suggests further increases may be ahead.