Two of Britain’s biggest lenders, Virgin Money and HSBC, both last week revealed mortgage rate increases, which will take effect this September. The increases affect a broad range of products in the purchase, remortgage, buy-to-let (BTL), and product transfer ranges and arrive at a time when most homeowners and first-time buyers are already facing higher borrowing costs.
HSBC Mortgage Rate Increases
With effect from the 9th of September 2025, HSBC is increasing interest on most of its residential mortgage book. These are:
Existing Customer Switching: 2 and 5 year fixed “Fee Saver” and “Standard” range of products in a variety of LTV bands (60% to 95%) are increasing. Premier Exclusive offers are also affected.
Borrowing More: Rate increases cover 2 and 5 year fixed range of existing customer products across Fee Saver, Standard and Premier Exclusive ranges.
First-Time Buyers and Home Movers: 2 and 5 year fixed Fee Saver, Standard, High Value and Premier Exclusive products across 60%–95% LTV bands are all increasing.
Remortgage Customers: Both 2 and 5 year fixed Fee Saver, Standard, High Value and Premier Exclusive mortgages will see rates rise at 60%–75% LTV.
In short, whether you’re a first-time buyer, home mover or existing HSBC borrower, the increases will affect most fixed rate products.
Virgin Money Mortgage Rate Increases
Virgin Money is also raising rates across its mortgage book, with increases of up to 0.22% on certain products:
Exclusive Purchase Offers: Increases of up to 0.22% across 75% to 95% LTV 2 and 5 year fixed rates, with initial rates from 4.12% – 4.99%. Shared Ownership products will increase by 0.10%.
Buy-to-Let (BTL): 2 and 5 year fixed products will increase by up to 0.15%, from 4.03%.
Product Transfers: 2, 3 and 5 year fixed rates increase by up to a maximum of 0.13%, whereas certain BTL product transfer deals increase by 0.05%.
Minimum lending levels on certain high-fee products have also changed.
Exclusive Remortgage Deals: Certain 75% LTV remortgage deals have been cut out entirely, such as 2 and 5 year fixed deals.
Industry Comment
Oportfolio Mortgages’ Head of Marketing and Communications, Louis Mason, commented:
“The announcements from both HSBC and Virgin Money, as well as some other lenders like TSB and Nationwide highlights the volatility of the UK mortgage market. We’ve seen lenders recently competing to offer better deals for first-time buyers, but these rate increases remind us that existing homeowners and remortgagers are still facing challenges. Now, more than ever, it’s important to seek advice from an experienced mortgage broker who can navigate these changes and secure the most suitable deal.”
What This Means for Borrowers
For new and existing borrowers alike: mortgage rates are unpredictable. If you’re remortgaging, purchasing a new property, or taking a mortgage to purchase your first home, it is advisable to lock in a deal now before delay and the potential for further increases.
Speak With a Mortgage Adviser
If you need to remortgage, buy a first home, or move home, Oportfolio Mortgages can help. We use all the major lenders, including HSBC and Virgin Money, to get the best mortgage rates for your circumstances. Call Oportfolio Mortgages today to discuss your options.
Mortgage Rate Increases – FAQs
Q: Why are HSBC and Virgin Money increasing mortgage rates?
A: Swap rates, Bank of England base rate forecasts, and levels of funding determine mortgage rates. Inflation is still above target, so lenders are holding back.
Q: Which HSBC mortgage offers are rising?
A: Ninety-nine percent of HSBC’s fixed-rate residential offers, comprising first-time buyer, home mover, remortgager and existing customer offers, are rising.
Q: Are Virgin Money remortgage offers still being offered?
A: Some Virgin Money only remortgages have been withdrawn, and others are rising in cost. Borrowers would be wise to act quickly and take a deal.
Q: Will mortgage rates keep going up in 2025?
A: Nobody knows for sure, but by examining the state of affairs at present, rates may remain high for the foreseeable future, subject to inflation and Bank of England action.
Q: What if my mortgage is coming up for renewal?
A: Speak to a mortgage adviser earlier. Brokers like Oportfolio are able to shop around various lenders and secure a deal before rates increase once more.
