HSBC Joins Mortgage Rate Rises Following Nationwide and Virgin Money Announcements
HSBC has become the latest major high street lender to announce increases to its residential mortgage rates, following similar moves by Nationwide Building Society and Virgin Money yesterday. The bank's adjustments will take effect from Wednesday 4th February 2026.
Specific Rate Changes Across Product Categories
The lender has confirmed several specific increases across different mortgage products:
- 2-year 60%–95% LTV Home Mover products will increase by up to 0.10%
- 2-year 60%–95% LTV First Time Buyer products will also rise by up to 0.10%
- Selected 5-year fixed rates will increase by up to 0.07%
- 2- and 5-year 60%–75% LTV Remortgage fixed rates will increase by up to 0.07%
These changes come after Nationwide increased selected fixed rates by up to 0.19% and Virgin Money by up to 0.14% in their recent announcements. The coordinated moves suggest a broader trend in the mortgage market as lenders adjust to current economic conditions.
Expert Warning for First-Time Buyers on Hidden Costs
While these rate changes may make home ownership more accessible for some, financial experts are warning first-time buyers to prepare for substantial additional expenses beyond their mortgage payments and deposit.
Holly Andrews, Managing Director at KIS Finance, explained: "Most first-time buyers focus solely on saving for their deposit and securing a mortgage, but overlook the substantial additional costs that come with making a property actually livable."
Andrews highlighted several key areas where new homeowners often face unexpected expenses:
- Essential appliances - Previous owners may take all appliances, requiring immediate purchase of washing machines, fridges, and cookers at costs exceeding £1,500
- Urgent repairs - Problems like boiler failures, leaking roofs, or electrical issues often emerge within the first weeks of moving in
- Home survey limitations - Even professional surveys can miss developing issues that suddenly require attention
The Reality of Post-Purchase Financial Planning
"The reality is many first-time buyers have emptied their savings accounts for the deposit, leaving nothing for these crucial extras," Andrews continued. "This often leads to taking on additional debt through credit cards or loans, adding further financial strain at an already stressful time."
Recent changes to stamp duty thresholds have created additional market urgency, with first-time buyers benefiting from relief schemes sometimes forgetting to budget comprehensively for what comes after the property purchase.
Andrews advised: "Start with absolute necessities like heating, hot water, and kitchen appliances. Cosmetic improvements can wait, but many first-time buyers make the mistake of spending on redecorating before ensuring these fundamentals are sorted."
The financial expert concluded with a crucial reminder: "The financial commitment doesn't end when you collect the keys, in many ways, that's just the beginning. Proper budgeting for these hidden costs can be the difference between a dream first home and a financial nightmare."
With mortgage rates adjusting across multiple lenders, prospective homeowners are advised to consider both their borrowing costs and the complete financial picture of property ownership when planning their move onto the property ladder.
