Savers are being offered a boost just as homeowners face growing uncertainty, with Nationwide Building Society launching new higher-rate ISAs - while warning the housing market could soon feel the impact of global turmoil.
Nationwide Building Society has increased rates across its fixed savings range, with headline deals including:
- 1-year Fixed Cash ISA: 4.35%
- 2-year Fixed Cash ISA: 4.40%
- 3- and 5-year Fixed Cash ISA: 4.50%
- Fixed rate bonds: 4.00% across 1–3 years
Richard Stocker, Head of Savings, said: “We’re pleased to launch new higher rates… with both short- and longer-term options.”
The move gives savers a rare chance to lock in stronger returns - but comes as expectations for interest rate rises are shifting rapidly.
At the same time, Nationwide’s latest index shows the UK housing market regaining momentum:
- Annual house price growth: 2.2% (up from 1.0%)
- Monthly growth: 0.9% in March
- Strongest region: Northern Ireland (+9.5%)
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Mortgage rates could rise fast
Markets are now expecting the Bank of England to raise interest rates three times in the next year - a major reversal from earlier forecasts of cuts.
That shift is already feeding through into:
- Higher mortgage rates
- Rising borrowing costs
- Reduced affordability for buyers
Industry voices say the March price surge may not last. There are two competing forces shaping what comes next:
- Higher savings rates. Good for savers locking in deals now
- Rising inflation and energy costs. Likely to push mortgage rates higher
Nicky Stevenson of Fine & Country said: “The spring market is waking up… but the wider economic backdrop could cloud the outlook.”
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