Market Movements
Monday Market Update: Why Mortgage Rates Stayed Still Amid Base Rate Expectations (6 April 2026)
No rate changes today after a turbulent March saw HSBC hike rates by up to 60 basis points and Nationwide make measured increases. The calm gives borrowers breathing space amid an evolving competitive landscape.
A Quiet Start to April as Lenders Hold Their Ground
Monday brought an unusual calm to the mortgage market, with no major lenders adjusting their rates after a turbulent March that saw significant moves from both HSBC and Nationwide. This pause gives borrowers a chance to digest the changes that have reshaped the competitive landscape over recent weeks.
The lack of movement today contrasts sharply with the flurry of activity we've witnessed recently. HSBC delivered substantial rate increases on 27 March, while Nationwide made smaller but notable adjustments on 1 April. Meanwhile, NatWest pushed rates higher on 31 March, creating a mixed picture for borrowers shopping around.
March's Rate Shock: HSBC's Comprehensive Repricing
The most dramatic changes came from HSBC ten days ago, when the bank implemented increases ranging from 20 to 60 basis points across its entire mortgage range. First-time buyers bore the brunt of these changes, with two-year fixed rates jumping from 4.57% to 5.17% at 60% LTV – a hefty 60 basis point increase that pushed rates well above the 5% threshold.
The scale of HSBC's repricing was particularly striking for higher LTV lending. At 90% LTV, remortgage customers saw their two-year rates leap from 5.19% to 5.79% – a 60 basis point increase that makes HSBC one of the more expensive options for borrowers with smaller deposits.
Interestingly, HSBC's existing customer rates received more modest treatment, with increases of just 15-40 basis points. This dual approach suggests lenders are keen to retain existing relationships while adjusting pricing for new business to match funding costs and demand.
Nationwide's Measured Response to Market Pressures
Nationwide took a more nuanced approach five days ago, implementing smaller increases that ranged from 5 to 25 basis points. The building society's two-year rates at 60% LTV rose from 4.55% to 4.71% – a 16 basis point increase that keeps them competitive in the current market.
What's notable about Nationwide's strategy is how they've maintained relatively attractive pricing while still responding to market pressures. Their current best rates of 4.71% for two-year fixes and 4.85% for five-year deals at 60% LTV remain among the most competitive available, according to our mortgage comparison data.
The building society's rate switch products saw slightly larger increases, with some two-year rates rising by 25 basis points. This reflects the reality that existing customers switching deals often have more limited options and may be less price-sensitive than new borrowers shopping around.
NatWest Joins the Upward Trend
NatWest made significant adjustments six days ago, with increases of 23-67 basis points across their range. The bank's five-year remortgage rate at 75% LTV saw the largest jump, rising from 4.74% to 5.41% – a substantial 67 basis point increase that reflects the challenges lenders face in pricing longer-term fixed rates.
These moves from NatWest, part of the Royal Bank of Scotland Group, signal that even the major high street banks are feeling pressure to reprice their mortgage books. The increases were most pronounced in the remortgage sector, where competition has been particularly fierce in recent months.
Current Market Leaders and Best Buys
Despite the recent increases, competitive rates remain available for borrowers who know where to look. Nationwide currently leads the market with two-year rates from 4.71% at 60% LTV, while their five-year deals start at 4.85%.
For tracker mortgages, Halifax offers the standout rate at 3.96%, providing borrowers with exposure to potential Bank of England base rate cuts while maintaining a competitive margin above the current 3.75% base rate.
The ten-year fixed rate market remains limited, with Nationwide offering rates from 5.19% for those seeking long-term certainty. These products have gained popularity among borrowers concerned about future rate volatility.
What's Driving the Rate Environment
The recent rate increases reflect several key market dynamics. Funding costs for lenders have remained elevated, influenced by gilt yields and swap rates that price in expectations for future interest rate moves. While the current base rate of 3.75% provides an anchor for tracker products, fixed-rate pricing depends more on longer-term market expectations.
Competition for deposits has also intensified, with banks needing to offer attractive savings rates to fund their lending. This creates a natural floor for mortgage rates, as lenders can't price loans too far below their funding costs without damaging profitability.
The remortgage market faces particular challenges, with many borrowers coming off historically low fixed rates and facing payment shocks. Lenders are balancing the need to attract this business with the reality of higher funding costs and increased risk from stretched household budgets.
Looking Ahead: What Borrowers Should Consider
With no changes today, borrowers have a window of stability to make decisions. Those with applications in progress should be aware that rates can change quickly – the recent moves from major lenders demonstrate how rapidly the landscape can shift.
The current rate environment rewards those who can secure lower LTV mortgages. The gap between rates at 60% LTV and 90% LTV has widened significantly, with some lenders now charging over a percentage point more for higher LTV lending.
For existing borrowers approaching the end of fixed-rate deals, the message remains clear: start the remortgage process early. Rate changes can happen with little warning, and securing a rate soon rather than waiting could prove financially beneficial.
Frequently Asked Questions
Why didn't any lenders change rates today when we've seen so much movement recently?
Lenders don't change rates daily – they typically adjust pricing in response to specific market conditions, funding cost changes, or competitive pressures. After significant moves from HSBC, Nationwide, and NatWest in recent weeks, many lenders are likely assessing market reaction before making further changes. This pause allows them to gauge demand at current pricing levels.
How significant were HSBC's rate increases compared to other lenders?
HSBC's increases on 27 March were among the most substantial we've seen recently, ranging from 20 to 60 basis points across their range. For comparison, Nationwide's increases were more modest at 5-25 basis points. HSBC's two-year rate at 60% LTV jumped from 4.57% to 5.17%, while Nationwide's equivalent rate rose from 4.55% to 4.71%.
Are tracker mortgages still worth considering with base rate at 3.75%?
Tracker mortgages can offer good value, especially with Halifax's current rate at 3.96% – just 0.21% above base rate. However, you need to be comfortable with payment fluctuations if base rate changes. Given current economic uncertainty, trackers suit borrowers who believe rates may fall or who can handle payment variability.
What's the current difference between two-year and five-year fixed rates?
The gap varies by lender, but it's relatively small currently. Nationwide offers two-year fixes from 4.71% and five-year from 4.85% at 60% LTV – just 14 basis points difference. This narrow spread means five-year fixes offer good value for those wanting longer-term certainty without paying a significant premium.
Should I wait for rates to fall or secure a mortgage now?
Timing the market is difficult, and recent lender moves show rates can increase quickly. If you need a mortgage soon, focus on securing a competitive rate rather than trying to predict future movements. Consider that even if rates fall later, you may be able to remortgage to a better deal, whereas waiting could mean missing current opportunities or facing higher rates.