Nationwide, Santander, HSBC customers warned as banks make joint decision

Nationwide, Santander and HSBC have all moved to HIKE mortgage rates despite the Bank of England cut. As we head towards Christmas, Nationwide has pushed up rates putting an end to its sub 4% products, and HSBC has now hiked rates twice within as many weeks.

Santander has also raised for new and existing customers by up to 0.31%. Nicholas Mendes, technical director at broker John Charcol, said: "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." John Fraser-Tucker, head of mortgages at online broker Mojo Mortgages, said: "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.

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“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."

HSBC has today raised the cost on selected two, three, five and 10-year deals. The rise hits first-time buyer, home mover and existing customers switching deals. Nationwide's increases from the lender means that most of its sub-4 per cent rates will also go above 4 per cent.

For example, its five-year fixed rate deal with a £999 fee has jumped from 3.94 per cent to 4.14 per cent. And Santander has upped rates by 0.29 per cent on residential fixed rates for purchase, remortgage, and green products.