Market news
HSBC, NatWest and others just raised mortgage rates. Here's why.
HSBC, NatWest, Nationwide and Halifax have all raised fixed mortgage rates since the start of September 2026, and Moneyfacts says more lenders are likely to follow within days.
What happened
Four of the UK's largest mortgage lenders repriced upwards in the first week of September: HSBC, NatWest, Nationwide and Halifax all increased selected fixed rates, and Family Building Society withdrew some fixed-rate products from sale entirely rather than reprice them. Moneyfactscompare tracked the moves and expects further repricing in the coming days.
Rachel Springall, finance expert at Moneyfactscompare, said the shift was close to unavoidable: "The pricing margins among major lenders are under pressure due to renewed volatility in the swap rate market, so it is somewhat inevitable for them to adjust rates." She added that lenders use swap rates as a key influence when setting mortgage pricing, so a sharp jump in swaps rarely stays isolated to the wholesale market for long.
Why swap rates moved
Swap rates are what lenders pay to borrow the money they then lend out as fixed-rate mortgages, so they move ahead of, and drive, the rates you're offered. Five-year swaps climbed above 4.5% in early September, their highest level in around three years, and two-year swaps rose sharply too. The 10-year gilt yield, the interest rate on UK government borrowing, rose above 5% for the first time in 18 years.
The trigger was renewed inflation concern tied to the escalating US-Iran conflict, which pushed investors to demand higher returns for holding UK government debt and for lending to banks. That's a global and geopolitical driver, not something the Bank of England or UK lenders set out to cause, but it still flows straight through to what you're quoted on a fixed deal.
What it costs
Moneyfacts calculates that a 0.25 percentage point rate rise on a £250,000 mortgage adds around £38 to the monthly repayment, or roughly £456 a year over a 25-year term. On a five-year fix, that's over £2,280 in extra interest across the deal if the higher rate holds for the full term.
If your current fix ends in the next six months, that's the number that matters: not the headline that rates are rising in the abstract, but what a 0.25 or 0.5 percentage point move actually adds to your monthly outgoings once it lands on your specific balance. Compare that figure against what happens if you do nothing and roll onto your lender's standard variable rate, which is typically several percentage points above even these newly-repriced fixes.
What's next
The Bank of England's Monetary Policy Committee meets on 17 September 2026 to set the base rate. A base rate move doesn't automatically match what happens to fixed rates, since fixes are already priced off swap rates and gilt yields rather than the base rate itself, but the meeting will be the next point where the Bank's own reading of the inflation picture becomes public. Until then, Moneyfacts' own guidance for anyone with a deal ending in the next few months is to get advice now rather than wait for rates to settle, given the pace of the last week's moves.
If you're not sure whether your own deal is exposed to this, start with what happens when your fixed rate ends to see the options before you need to act on them.
Frequently asked questions
Does this mean my mortgage rate is going up right now?
Only if you're taking out a new fixed deal or your current fix has already ended and you're on your lender's standard variable rate, which moves with the lender's own pricing decisions. If you're mid-way through an existing fix, your rate is contractually locked until that fix ends, regardless of what HSBC, NatWest or anyone else does this week.
Why do swap rates affect my mortgage if I'm not borrowing on the wholesale market?
Lenders fund the fixed-rate mortgages they offer you by borrowing at swap rates themselves, then adding a margin. When swap rates rise, that funding cost rises, and lenders pass some or all of it on through higher rates on new and renewed fixed deals. It's an indirect link, but a consistent one.
Should I lock in a rate now before more lenders reprice?
That depends on how close you are to needing a new deal and what's actually on offer for your loan-to-value, not on the general direction of the market this week. Most lenders let you reserve a rate months ahead of your current deal ending, so if you're within six months of your renewal date, it's worth checking what's available now rather than waiting to see if rates fall back.
Know the day your rate changes, not just the headline
Weeks like this are exactly why a fixed date matters more than a market average. Set up a free timeline for your mortgage and we'll tell you when your deal actually ends, so a week of lender repricing doesn't decide your next rate by default.
Examples are illustrative and rounded. Your own mortgage offer and lender confirm your actual figures and dates. This is information, not financial advice. For advice on your circumstances, speak to a mortgage adviser regulated by the FCA.