HSBC Holdings PLC (LSE:HSBA) will increase rates on all of its fixed-range products from Wednesday onwards, joining in on a trend which has seen rivals also lift fees.
The exact amount in which rates will go up hasn’t been confirmed by the bank, but experts believe the decision will prove a “blow for borrowers”.
Ranald Mitchell, director of mortgage broker Charwin Private Clients, said the decision will nullify any hopes that 2024 will be better than last year for borrowers and will bring “more mortgage market misery”.
"They are the latest lender to increase rates in what has now become an established upward trend," he said.
"After a scintillating start, 2024 is shaping up to be a repeat of 2023."
Barclays, NatWest, Nationwide and Santander enacted similar rate hikes last week after swap rates continued to increase in 2024.
Earlier this week, it was revealed Nationwide’s House Price Index had risen by 1.2% year on year in February, breaking a 12-month streak of declines while smashing market expectations of a 0.7% increase.