Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

HSBC, Santander and Nationwide raise mortgage rates by up to 45bps

Santander, Nationwide and HSBC UK have announced mortgage rate increases of up to 45 basis points, with buy-to-let, first-time buyer and remortgage ranges all affected. One lender has now effectively pulled the last of its sub-5% rates.

Santander hikes rates by 45bps

Santander has increased its rates by 45bps, effective Wednesday. Aaron Strutt, product and communications director at Trinity Financial, said the price hike of 0.45% on two-year fixes and 0.4% on five-year fixes would come as a shock to customers who check rates today and again on Wednesday. He added that he could not remember the last time five of the big six lenders hiked their rates on the same day.

The changes mean the bank has effectively pulled the last of its sub-5% rates. Within its first-time buyer range, the 90% LTV two- and three-year fixed rate with no fee and £250 cashback was increased by 45bps to 5.8%, while the 95% LTV two-year fixed rate with £250 cashback rose by 45bps to 6.05%.

In its buy-to-let range, rate hikes of 40–45bps were seen, with the highest rate being the five-year fixed rate with nil fee, increased by 40bps to 5.51%.

Nationwide increases across multiple ranges

From tomorrow, Nationwide will hike rates across its first-time buyer, home mover, remortgage, switcher and additional borrowing ranges, with fixed rates increasing by as much as 30bps. First-time buyer rates now sit between 4.64% and 5.74%, while remortgage rates now near the 6% range.

Strutt noted that lenders are under a lot more pressure to fund their mortgages because of increases to borrowing costs.

HSBC ups pricing from 15 September

HSBC UK will increase rates across a wide range of residential mortgage products from 15 September, including first-time buyer, home mover and remortgage deals. All two- and five-year fixed rates and all two-year tracker rates will rise across every LTV band, including Premier, High Value Mortgage and energy-efficient product ranges.

The lender is also making increases across its buy-to-let proposition, with all two- and five-year fixed rates and two-year tracker products for BTL purchase and remortgage customers rising across all LTVs, including Premier, £3,999 fee and energy-efficient mortgage options. Existing customer borrowing more and product transfer rates are also increasing.

What this means for the rental market

For letting agents and inventory clerks, the withdrawal of sub-5% rates and rising buy-to-let borrowing costs may affect landlord activity, though the source report does not comment on rental market impacts directly.