The new rates have come into action at Nationwide now, the high street chain has announced (Image: Getty Images)
Nationwide Building Society has revealed a significant update for account holders from this morning. Customers with ISA and savings accounts have been informed of adjustments to the interest rates.
The revised rates have taken effect immediately, the high street provider has confirmed. Richard Stocker, Head of Savings, said: “We’re pleased to be increasing rates across our ISAs and our instant access savings product, giving members even more long‐term value and meaningful benefits. Combined with our Branch Promise, we’re proud to be bringing even more value to the high street, further demonstrating our commitment to offering positive, competitive rates for our members.”
The Society is launching two new accounts, both offering members a competitive return:
- 1 Year Single Access ISA – 4.00%
- 1 Year Single Access Saver – 4.00%
In addition, Nationwide will increase rates on its 1, 2, 3 and 5 Year Fixed Rate Cash ISAs:
- 1 Year Fixed Rate ISA – 4.05%
- 2 Year Fixed Rate ISA – 4.05%
- 3 Year Fixed Rate ISA – 4.05%
- 5 Year Fixed Rate ISA – 4.25%
Simultaneously, the Society will discontinue its current 1 Year Triple Access ISA and 1 Year Triple Access Saver, both presently priced at 3.30%.
The announcement arrived as the average UK house price hit a fresh record of £301,151 in February, according to an index. Property values climbed by 0.3% month on month typically, following a 0.8% increase in January, Halifax reported.
The average house price rose by 1.3% annually in February. Amanda Bryden, head of mortgages, Halifax, said: “Since the start of the year, average prices have increased by around £3,000, with a typical property now costing £301,151.
“These latest figures suggest the market has regained some momentum after a softer end to 2025.”
She continued: “Looking ahead, geopolitical uncertainties seem set to influence the outlook for inflation and the wider economy.
“Against that backdrop, markets are now anticipating a more gradual path for interest rate reductions. “If realised, the speed at which borrowing costs ease may be tempered.”
Several major mortgage lenders have announced hikes to mortgage rates this week, with HSBC UK and Nationwide Building Society having increased some rates on Friday.
The changes follow rises in swap rates, which are utilised by lenders to price mortgages, with the conflict in the Middle East leading to market expectations of higher inflationary pressure.
Mark Harris, chief executive of mortgage broker SPF Private Clients, stated: “Swap rates, which underpin the pricing of fixed-rate mortgages, have edged higher amid fears that rising prices will fuel inflation. Expectations of a near-term base rate cut, perhaps as early as this month, have substantially reduced.
“A number of lenders have already increased their mortgage rates to reflect higher swaps and others are likely to follow suit in order to keep in line and protect service levels.”
Karen Noye, a mortgage expert at wealth manager Quilter said: “Whilst the market has enjoyed early momentum, geopolitical events may throw this into question.
“The backdrop for buyers has become more complicated in just a few days. Hopes of a steadier rate environment have been disrupted by fresh instability following the war in Iran.”
Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners stated: “Now the housing market has a fresh challenge: conflict in the Middle East that has sent energy prices soaring, creating an inflationary headwind which may cloud the outlook for interest rates, just at a point when borrowing costs had eased into more palatable territory.
“The Bank of England had been expected to cut interest rates at its next Monetary Policy Meeting on March 19, supported by easing inflation, concerns over rising unemployment and sluggish economic growth – with the potential for further cuts later in the year.
“However, fears are now mounting that rate cuts may be delayed, or worse, that the Bank may even need to raise rates again to counter a fresh inflationary shock driven by surging energy prices.”
Tom Bill, head of UK residential research at Knight Frank, commented: “Momentum in the housing market had been rebuilding after November’s Budget and the outlook for mortgages was brighter only a week ago.
“However, a prolonged conflict in the Middle East would dampen sentiment and delay rate cuts due to rising inflation, which would put downwards pressure on prices.
“That said, we have seen how quickly interest rate expectations can change this year, and the underlying weakness in the jobs market is one of several reasons that multiple cuts could come back onto the table in 2026, which would support demand.
“A lot hinges on the length of the conflict.”
Tony Gambrill, regional sales director at Chestertons, commented: “In February, the property market was driven by first-time buyers as well as families wanting to upsize which boosted demand for new-build homes and larger houses.
“Despite some lenders raising mortgage rates again, house hunters remain undeterred which suggests a particularly busy and competitive spring market ahead.”
Here are average house prices and the annual change, according to Halifax (the regional annual change figures are based on the most recent three months of approved mortgage transaction data):.
East Midlands, £246,697, 0.2%.
Eastern England, £333,450, minus 0.7%.
London, £538,200, minus 1.0%.
North East, £181,838, 3.5%.
North West, £246,292, 2.9%.
Northern Ireland, £218,608, 6.3%.
Scotland, £222,286, 4.7%.
South East, £383,834, minus 2.2%.
South West, £302,775, minus 0.9%.
West Midlands, £263,072, 1.0%.
Yorkshire and the Humber, £218,777, 1.6%.