HSBC increases mortgage rates by up to 0.10% after Nationwide and Virgin Money

Nationwide Building Society and Virgin Money announced new rates yesterday

HSBC is the latest high street lender to announce it is increasing residential mortgage rates, following Nationwide yesterday, which increased selected fixed rates by up to 0.19%, and Virgin Money by up to 0.14%.

With effect from Wednesday 4th February, HSBC’s 2-year 60%–95% loan-to-value (LTV) Home Mover products will increase by up to 0.10%.

The lender’s 2-year 60%–95% LTV First Time Buyer products will also rise by up to 0.10% and selected 5-year fixes will increase by up to 0.07%.

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Meanwhile, 2- and 5-year 60%–75% LTV Remortgage fixed rates will increase by up to 0.07%.

It means more people will have access to the property ladder, getting themselves a mortgage and waving goodbye to renting.

However, first-time buyers are being warned to set aside an extra “£7,000”.

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.

“You might move into your dream home only to discover the previous owners have taken all the appliances with them, leaving you needing to immediately purchase a washing machine, fridge, and cooker, which alone can cost upwards of £1,500.

“The reality is many first-time buyers have emptied their savings accounts for the deposit, leaving nothing for these crucial extras. 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 a sense of urgency in the market.

“First-time buyers benefiting from relief schemes are often so focused on the property purchase that they forget to budget for what comes next.

“Problems like boiler failures, leaking roofs, or electrical issues often emerge within the first few weeks of moving in. Even with a homebuyer’s survey, these can be missed or develop suddenly, leaving new owners facing bills of thousands of pounds.

“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 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.”