Halifax, HSBC and Barclays hike mortgage rates by up to 0.2%

Halifax, HSBC and Barclays increased fixed-rate mortgage products by up to 0.2% on 21 July 2026, with TSB also repricing within days. The moves follow a sharp climb in swap rates - the market benchmarks lenders use to price fixed-rate deals. Escalating conflict in the Middle East, including the closure of the Strait of Hormuz, drove oil prices to $100 per barrel and triggered a broad repricing wave across the market.

Which lenders changed their rates?

Halifax raised all two, three and five-year fixed rates for home movers and first-time buyers by up to 0.2% (20 basis points - each basis point equals 0.01%), according to PropertyWire. Two-year tracker rates for purchase and remortgage customers also increased by up to 0.1%.

Halifax's BTL (buy-to-let) arm, BM Solutions, repriced purchase and remortgage deals by up to 0.19%, according to Mortgage Solutions reporting on 20 July 2026. This applied to both individual and limited company borrowers. The changes also removed Halifax's sub-4% mortgage offerings from the market.

Barclays increased rates across its residential purchase, remortgage and product transfer ranges. Mortgage Strategy reported that its two-year fixed product at 70% LTV (loan-to-value) with a £1,999 fee moved from 4.76% to 4.96% - a rise of 20 basis points. TSB raised selected residential rates by up to 20 basis points and BTL rates by up to 15 basis points. HSBC also repriced across the majority of its residential and BTL fixed-rate ranges.

What pushed swap rates higher?

Swap rates are the market's forward-looking measure of interest rate expectations. Lenders use them to cost fixed-rate products, and when swap rates rise, mortgage pricing typically follows within days.

According to Chatham Financial data reported by Mortgage Strategy (22 July 2026), the two-year SONIA (Sterling Overnight Index Average) swap reached 4.258% - up from 3.993% one month prior. That is a rise of roughly 26 basis points. The five-year equivalent moved from 4.034% to 4.316% over the same period.

The trigger was escalating Middle East conflict. Multiple trade publications attributed the swap rate surge to the closure of the Strait of Hormuz. This pushed oil to $100 a barrel for the first time since May 2026. The data shows this kind of geopolitical shock can compress months of gradual repricing into a matter of days.

What does this mean for BTL investors?

For BTL investors, a 0.2% rate increase is not trivial. On a £200,000 interest-only mortgage, it adds approximately £400 per year in gross borrowing costs. Across a portfolio of five properties, that figure becomes £2,000 annually - before accounting for any stress-test uplift applied at the point of remortgage.

The immediate concern for portfolio landlords is the ICR (interest coverage ratio) - the test lenders apply to confirm that rental income sufficiently covers mortgage payments. As rates climb, more borrowers will find their ICR calculations squeezed, particularly on lower-yielding properties or in higher-LTV deals.

Investors approaching a product maturity may wish to use our free BTL stress test calculator to model how current market rates affect loan viability. For context on how experienced landlords approach periods of repricing, the property investment strategies guide is worth reviewing. Brokers can also help identify lenders whose ranges have not yet fully repriced - the negotiation and finance section covers how to approach those conversations.

Key takeaways

• Halifax, HSBC, Barclays and TSB all raised fixed mortgage rates by up to 0.2% (20 basis points) in the week of 21 July 2026

• The two-year SONIA swap hit 4.258% on 22 July (Chatham Financial), up from 3.993% one month prior - a swing of roughly 26 basis points

• Halifax's sub-4% products have been withdrawn following this round of repricing

• BTL investors with upcoming product maturities may wish to review ICR calculations ahead of renewal, particularly on lower-yielding properties