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Barclays and HSBC increase rates: "We’re definitely seeing the sub-4% deals slip away, and fast"

ended 10. June 2025

From tomorrow, 11 June, Barclays has announced rate increases averaging 0.2% across its fixed rate range in line with similar increases launched today by HSBC. This comes just hours after NatWest said it was cutting rates from the 11th June, with up to 0.23% off selected fixed deals. Newspage asked brokers for their views on the mixed messaging coming out of the mortgage market at present and where they think rates are headed next. Views below.

9 responses from the Newspage community

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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
It really is a minefield with lenders at the moment. NatWest and Nationwide have reduced recently, which is more likely to attract business than due to external market data. HSBC and Barclays are renowned for upping rates when their service levels fall. Hopefully we will see a recalibration over the coming weeks in time for a summer of house purchasing. This morning's poor jobs data could increase the chances of a base rate cut.
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Harry GoodliffeVerified
Director at HTG Mortgages
We’re definitely seeing the sub-4% deals slip away, and fast. Barclays and HSBC hiking rates feels like a mix of reacting to rising funding costs and not wanting to be overwhelmed with demand. No lender wants to be too competitive in a market this uncertain. NatWest dropping rates earlier today was a bit of a curveball, but I don’t expect it to set a trend. The overall direction still feels upward. If you’re waiting for things to get cheaper, you might be waiting a while.
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Justin MoyVerified
Managing Director at EHF Mortgages
This is a real mixed bag, with mortgage lenders typically increasing rates, such as Barclays and HSBC, while NatWest flexes its muscles out of state ownership with rate cuts due later in the week. No lender wants to be a market leader, so this has the feel of normalising rather than a reflection of Swap rates. It's not quite a cartel, but it's dangerously close to that kind of pricing method.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Swap rates have been fairly steady in the past couple of weeks and this is reflective in the mixed reactions we are currently seeing from lenders. Lenders have targets and it's likely NatWest are reducing their rates to help them meet them. Meanwhile, we are seeing HSBC and Barclays increase rates as they have been pricing closer to the top in recent weeks and it's likely they want to reduce their business levels for the time being.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This news is an indication that no lender is keen on being the market leader. It also represents the uncertainty in the broader economy, with Barclays increasing rates and NatWest decreasing them. It looks like the rate war we had over the past few months has ground to a halt. Instead, we may now be entering a period where lenders tinker around the edges rather than make broad and eye-catching cuts.
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Jack TuttonVerified
Director at SJ Mortgages
The mortgage market roller-coaster continues, making it very difficult for consumers to decide what to do. This comes at a time when so many people's mortgage deals are ending before the end of the year. Barclays have held their rates a lot longer than others so their increases come as no real surprise, however NatWest's decreases are interesting as it comes off the back of them making several increases recently. Lenders are having to strike a balance between their work loads, competitivity and the cost of funding, which is making it very difficult for consumers to decide on the best way forward.
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David StirlingVerified
Independent Financial Adviser at Mint Wealth
Barclays and HSBC are both raising rates, but this seems to be an attempt to slow applications as their service levels have dropped significantly recently. The cuts from NatWest are more likely a realignment as they haven't been particularly competitive recently, rather than a fanfare for borrowers that other lenders will follow suit. This could well spell the end of sub-4% mortgages for a period.
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Aaron StruttVerified
Product and Communications Director at Trinity Financial
Some borrowers still believe we are in a rate-cutting environment where mortgages are getting cheaper, but this is generally not the case. For the moment, lenders such as Nationwide, Santander and Barclays for Intermediaries still offer sub-4% mortgages. Even with the recent price increases, mortgages should remain pretty resonably priced over the near term. There are still some decent fixes and tracker options available now, but there are certainly fewer three and five-year fixes priced around 3.99%. While the cost of funding does seem to have stabilised, it would not be a surprise to see more lenders pushing up their prices over the coming days.
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Dariusz KarpowiczVerified
Director at Albion Financial Advice
The mortgage market is having an identity crisis - with Barclays and HSBC hiking rates whilst NatWest cuts them, it's like watching lenders play musical chairs with borrowers' wallets.
Truth is, those tempting sub-4% deals are vanishing faster than biscuits at a tea break. Lenders are juggling their service levels, application volumes and funding costs, creating a pricing lottery where nobody wants to be too competitive. Some are raising rates to stem the flow of applications they can't handle, whilst others drop them to hit targets. For borrowers sitting on the fence, the message is clear: the days of rock-bottom rates appear numbered, and waiting for cheaper deals might leave you disappointed.