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TSB in "brutal" 0.5% increase in mortgage rates as it hikes them twice in 24 hours amid Iran war

ended 10. March 2026

Twice in 24 hours, TSB has announced a further increase of  0.50% across all mortgage deals, on top of the rate increases announced on Monday :

Monday :

 

Announced Tuesday (Today) :

Significant increases from one of the key High Street mortgage lenders, in response to the spiralling Swap Rates and the Middle East conflict. 

Your thoughts on this decision to increase twice in 24 hours?

 

8 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
This 2nd increase this week has all the hallmarks of a lender that doesn't want any business for the next few days, as markets settle after a turbulent few days. Most High Street lenders have, in the main, had relatively small increases compared to the huge fluctuations in Swap rates, with those smaller lenders that rely extensively on Swap funding pulling out of the market completely, waiting for the dust to settle. With Swap rates falling today, there will be a breeze of optimism that we will return to normal soon, but for the moment, funding will continue to be troubled on pricing, and lenders will pause or limit their new business.
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Ken James
Director at Contractor Mortgage Services
TSB’s rate button may now be permanently stuck on ‘increase’ and other lenders are sure to follow in what can only be described as worrying times.
Mortgage brokers across social media and other platforms are sending out a clear message that deals can disappear fast with lenders repricing at record speed, the safest strategy may be to secure a rate while it still exists. If you’re sitting on the fence about locking in a mortgage deal, you need to get your skates on because at the current pace, by the time you finish reading this post, the rate may already have gone up again.
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David Stirling
Independent Financial Adviser at Mint Wealth
TSB are certainly keeping brokers on their toes and while other lenders seem to be reviewing their pricing regularly, TSB are taking a much more dynamic approach with hefty increases and daily updates. While swap rates and global tensions will be the official explanation, announcing increases in this way this seems like panic from the lender. At TSB's current pace of rate changes, brokers may spend less time analysing the mortgage market and more time refreshing their inbox.
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Simon Bridgland
Broker at Charwin Private Clients
In reality in such a rapidly changing environment its no surprise lenders are struggling to keep up and plan ahead. This leaves borrowers in the unenviable position of not having a hope in hell of securing the headline rates they see. When the wind changes direction again on rates, will borrowers be left huddling for shelter on higher rates or will lenders give them a decent opportuniuty to reverse the rapid increases, you can bet your bottom dollar that those dealing directly with a lender wont be told about reductions in time for the borrower to action and get a better deal before their loans complete.
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Harry Goodliffe
Director at HTG Mortgages
Two rate hikes in 24 hours is pretty dramatic, even by today's standards. The volatility we’re seeing in global markets, including the Middle East tensions, is clearly feeding into pricing. I suspect we may see a few more lenders make similar moves if swap rates remain elevated, alongside some lenders already removing 5-year products.
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Dariusz Karpowicz
Director at Albion Financial Advice
When TSB doubles up on rate hikes inside 24 hours, it is not a pricing strategy, it is a stop sign. Lenders do not increase twice in a day because they want your business; they do it because swap rate volatility has made pricing tomorrow genuinely impossible today.
With swap rates now falling, there is reason to think the worst of this repricing sprint is nearly over. But borrowers sitting on the fence should not wait for confirmation. Rates you see this morning may not exist this afternoon, and anyone dealing direct with a lender will be the last to hear about reductions when they arrive.
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Elliott Culley
Director at Switch Mortgage Finance
Mortgage lenders are increasing rates across the board as swap rates have spiked over the last week. This has lend to mortgage lenders fighting to stay uncompetitive as opposed to the normal objecitve to be the most competitive. Its an unprecedented to move by TSB to increase rates twice in one week, but as other mortgage lenders also react, sometimes lenders have to reassess, which is what TSB have done.
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Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
I am not suprised TSB are increasing their rates but a jump of 0.50% indicates they want to stop receiving business. Moves like this often signal lenders pressing pause on new volumes while markets settle after a volatile few days.

Lenders will likely remain defensive in the short term, adjusting pricing and controlling application volumes until funding costs become clearer again.