HSBC Holdings PLC (LSE:HSBA) has responded to Wednesday's sharp share price drop and "messy" results by announcing that mortgage rates will be repriced higher, starting tomorrow.
The exact amount rates will increase is yet to be confirmed, but reports indicate it will relate to new and current residential customers who are on loan-to-value and fixed-term schemes.
It comes as swap rates, which influence how much lenders spend to provide mortgages, continue to rise, with analysts arguing the markets may have gotten carried away with the chance of an early interest rate cut.
Michelle Lawson, director at Lawson Financial, said: "Another one bites the dust. We have returned to uncertain times in the mortgage and property market. Hopefully things will settle down soon as the property industry is such a trigger for so many others. The yo-yoing is no good for anyone."
Shares in HSBC are trading flat, having failed to recoup any of the losses suffered on Wednesday.
On Wednesday, Europe's biggest bank revealed fourth-quarter profits had plummeted 80% to US$1 billion.
It was a "messy" quarter in the opinion of analysts at Jefferies, calculating that 'clean' Q4 results excluding things like the China impairment and Argentina, showed pre-provision profit that was 4% ahead of estimates driven by better revenue (+5%) and disappointing costs (6% higher than consensus) as well as 8% better credit costs.
Earlier this week, Banco Santander (LSE:BNC) said it would be increasing all of its residential and buy-to-let fixed-rate mortgages for new customers.
Rates are expected to increase by as much as 0.34%, while selected fixed rates in its product transfer range will also rise.