TSB confirmed its residential two and five year fixed First Time Buyer & Home Mover rates increased by up to 0.30%; and its two and five-year Fixed Remortgage 0-80% LTV rates has increased by up to 0.30%

Santander changes include increases of up to 0.29% on selected standard residential fixed rates for purchase, remortgage, and green products. Rises of up to 0.20% on all large loan fixed rates and increases of up to 0.26% on all new build fixed rates.

HSBC has confirmed it will too increase rates, but has not as yet specified what the increases will be.

Commenting on the rate changes, John Charcol mortgage technical manager Nick Mendes said: “HSBC has announced a second rate increase within just two weeks, following a similar move by Santander to increase earlier this week.

“While many lenders have opted to maintain their existing rates to preserve business volumes and service standards, those offering competitive pricing have been forced to adjust likely due to applications levels. These influxes often stretch service levels, prompting rapid rate changes to manage demand effectively.

Mendes said that adding to the pressure, swap rates had edged upward, further necessitating. “The combination of market dynamics and rising swap rates highlights the difficult landscape borrowers are navigating.”

Bank rate decision

Mojo Mortgages head of mortgages John Fraser-Tucker pointed out that the move by lenders might to some seem counterintuitive given the Bank of England’s recent decision to lower the base rate to 4.75% – the second reduction this year.

“While the Bank of England’s decision to lower the Bank rate last week might lead some to expect across-the-board reductions in mortgage rates, it’s important to understand that the mortgage market doesn’t always move in perfect sync with the Bank of England’s base rate decision.

“Fixed-rate mortgages, in particular, are influenced by a complex array of factors beyond just the Bank Rate. These can include the lender’s own funding costs, their view on future economic conditions, competitive positioning in the market, and even their internal goals for new business.

“In Santander’s case, their decision to increase some fixed rates, despite the recent Bank Rate reduction, could be driven by any number of these factors

“Lenders continually assess risk and adjust their offerings accordingly. Sometimes, this means we see rate increases even in an environment where we might expect decreases.”