Easter Bank Holiday Brings Market Pause - But Rate Rises Still Hitting Borrowers (5 April 2026)

Easter Sunday Quiet as Lenders Pause — But Rate Storm Continues

Easter Sunday brought a welcome respite from mortgage rate announcements, with no lenders updating their pricing today. However, borrowers shouldn't mistake this holiday calm for market stability — significant rate increases from HSBC and Nationwide over the past week continue to reshape the lending landscape.

The Easter break has given borrowers a moment to catch their breath after a particularly challenging period that saw some of the UK's largest lenders push rates substantially higher. With the Bank of England base rate holding at 3.75%, these increases reflect lenders' own funding pressures rather than monetary policy changes.

HSBC's Comprehensive Rate Overhaul Still Reverberating

Nine days ago, HSBC implemented one of the most comprehensive rate increases seen this year, affecting virtually every product category. The changes, made on 27 March, saw increases ranging from 20 to 60 basis points across their entire range.

For first-time buyers, the impact was particularly severe. HSBC's 2-year fixed rate at 60% LTV jumped from 4.57% to 5.17% — a substantial 60 basis point increase. At higher LTV bands, the pain was equally acute: 90% LTV first-time buyer rates rose from 4.69% to 5.29%.

The remortgage market faced even steeper increases. HSBC's 90% LTV remortgage rate climbed from 5.19% to 5.79% — a punishing rise for borrowers with limited equity. Even their tracker products weren't spared, with increases of 20 basis points across the board.

Buy-to-Let Investors Hit Hard

Property investors using HSBC found themselves facing significant cost increases. Standard buy-to-let purchase rates at 75% LTV rose from 4.59% to 5.19%, while remortgage products saw similar jumps. The energy-efficient property discounts remained, but the underlying rates all moved sharply higher.

Nationwide's Recent Moves Add Pressure

Just four days ago, Nationwide added to borrowers' woes with their own round of increases. The building society raised rates across most categories, with particularly notable impacts on their popular first-time buyer products.

Nationwide's 95% LTV first-time buyer rates saw mixed movements — their 2-year fix rose from 5.55% to 5.63%, while the 5-year option increased from 5.54% to 5.69%. For a market segment already struggling with affordability, these increases add meaningful cost.

The lender's existing customer products also moved higher, with rate switch options seeing increases of 20-25 basis points. Even their 60% LTV rate switch product rose from 4.34% to 4.59% for the 2-year fix.

NatWest's Sharp Increases Still Fresh

Five days ago, NatWest delivered some of the sharpest rate increases seen recently. Their remortgage products were particularly affected, with some rates jumping by up to 67 basis points.

The most dramatic move came on their 75% LTV remortgage 5-year fix, which surged from 4.74% to 5.41%. Purchase rates also climbed significantly, with their 90% LTV 2-year fix rising from 4.90% to 5.18%.

Current Market Leaders Emerge

Despite the widespread increases, Nationwide currently offers the most competitive rates in several categories. Their 60% LTV home mover 2-year fix sits at 4.71% — among the lowest available. For 5-year fixes, Nationwide's 4.85% rate at the same LTV band leads the market.

Tracker mortgage seekers will find the best current deal with Halifax at 3.96%, though this represents a significant premium over the 3.75% base rate.

Looking Ahead: More Volatility Expected

The recent spate of increases from major lenders suggests the mortgage market remains under pressure. Funding costs continue to challenge lenders, and tomorrow's return to normal business hours could bring fresh rate announcements.

For borrowers currently in the market, the message is clear: rates remain volatile and generally upward-trending. Those with offers already secured should move quickly, while others should prepare for a challenging environment.

Product transfers for existing customers often offer better rates than new business, so remortgage customers should explore these options early. The gap between new customer rates and existing customer deals has widened considerably at some lenders.

Advice for Current Borrowers

With rates at multi-year highs across most categories, borrowers face difficult decisions. Those coming to the end of current deals should start their remortgage search at least six months early to secure the best available rates.

First-time buyers may need to reconsider their budgets or delay purchases until market conditions improve. The current environment particularly challenges those with smaller deposits, where rate increases have been most severe.

For those with existing mortgages, now is an excellent time to review options with current lenders. Many offer preferential rates to retain customers, potentially saving thousands compared to switching to a new lender.

The mortgage comparison landscape continues to shift rapidly, making professional advice more valuable than ever. Independent brokers can navigate the complex rate environment and identify the best deals for individual circumstances.