Halifax, Britain’s largest mortgage provider, has announced an increase in borrowing costs that will impact new borrowers and existing customers alike. Starting from Friday, 26 April, the changes are part of a growing pattern where financial institutions are raising rates in response to shifting market conditions.

Halifax, along with its specialist lending arm BM Solutions, will be adjusting their fixed rates upwards by up to 0.2 percentage points. This increase will apply to a variety of mortgage products including those for home movers, first-time buyers, and those looking to remortgage or transfer their existing mortgage product. For example, if you are looking to remortgage, the rates from Halifax start at 4.68% for a two-year fixed deal (at 60% Loan to Value, or LTV) which includes a fee of £999, or a slightly lower rate of 4.33% for a five-year deal.

Similarly, BM Solutions is set to raise selected buy-to-let purchase and remortgage rates for new customers, as well as for existing customers seeking to transfer their current deals.

These rate adjustments are not isolated, as other prominent lenders such as HSBC, Virgin Money, TSB, and NatWest have also introduced rate increases this week.

Why Are Mortgage Rates Rising?

The upward revisions in fixed mortgage rates are primarily driven by rising swap rates, which are a key indicator used by banks to set their own lending rates. These rates are influenced heavily by gilt yields—the interest rates on UK government bonds—which themselves have been climbing.

Nick Mendes, a mortgage expert at broker John Charcol, explains that the increases in mortgage rates are a direct response to recent jumps in gilt yields. This change stems from market expectations adjusting around when and by how much central banks might cut interest rates. The anticipation now is that interest rates will remain elevated for an extended period.