Nationwide Building Society has made significant changes to its product rates affecting millions of customers across savings, current accounts, mortgages, and credit cards. These changes reflect both market conditions and the society’s commitment to offering competitive rates while balancing long-term sustainability.
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| Product Type | Old Rate (AER) | New Rate (AER) | Effective Date |
|---|---|---|---|
| Loyalty Saver/ISA | 3.20% | 3.30% | June 2025 |
| Triple Access Online | 3.20% | 3.30% | June 2025 |
| Instant Access Saver | 1.25%/1.30% | 1.35%/1.40% | June 2025 |
| FlexDirect (revert rate) | 0.25% | 1.00% | 1 July 2025 |
| Credit Card (affected) | Variable | +1–5% points | April 2025 (May stmt) |
Savings and Current Account Updates
Increased Rates for Loyalty and Limited Access Accounts
Nationwide is increasing rates for several popular savings products. Existing customers with Loyalty Saver, Loyalty ISA, and Loyalty Single Access ISA accounts will see rates rise by 0.10% to 3.30%. Limited access accounts, including previous and current issues of the Triple Access Online ISA and Triple Access Online Saver, will also increase by 0.10% to 3.30%. Instant access accounts—Instant Access Saver, Instant ISA Saver, and Cashbuilder—will see increases of up to 0.10% on selected tiers up to £49,999, now paying either 1.35% or 1.40% AER depending on the amount saved.
FlexDirect Current Account Changes
The FlexDirect current account continues to offer a market-leading introductory interest rate of 5.00% AER on balances up to £1,500 for the first 12 months. From 1 July, the revert rate (the rate after the introductory period) will rise from 0.25% AER to 1.00% AER. This change benefits customers who maintain an in-credit balance beyond the first year.
Mortgage Rate Adjustments
Upward and Downward Changes Across Mortgage Products
Nationwide has adjusted its mortgage rates in response to the current swap rate environment. Selected two, three, and five-year fixed mortgage rates have increased by up to 0.20%. For example, two-year fixed rates for first-time buyers now start from 4.29% at 60% LTV and 4.43% at 75% LTV. Three-year fixes range from 4.19% at 60% LTV to 5.44% at 95% LTV. Five-year fixes now start from 4.14% at 60% LTV. Nationwide has also reduced rates on some products, including 10-year fixed rates (down by up to 0.11%) and higher LTV two-year fixed rates (down by up to 0.15%).
Credit Card Rate Increases
Significant Hikes for Existing Customers
From April 2025, Nationwide increased interest rates for some existing credit card customers by up to five percentage points—potentially a 50% jump for those on lower rates. This affects Member, Select, Nationwide, Gold, and Classic credit cards. The maximum APR remains at 24.9% for both new and existing customers. Customers were notified by letter in February, with the new rates appearing on statements from May 2025.
Customer Options and Protections
Customers have the option to opt out of the rate increase, but doing so will freeze their card for new transactions. Existing balances can still be paid off at the old rate. Importantly, Nationwide will not increase rates for customers in financial difficulty or those with persistent debt of over 30 months.
Why Are Rates Rising?
Market Pressures and Cost Management
Nationwide cites rising costs of providing and maintaining credit cards as a key reason for the increases. The society aims to balance the interests of savers and borrowers, ensuring long-term sustainability while keeping rates below the market average.
How the Changes Affect You
Impact on Savings and Borrowing
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Savings: Customers with variable rate savings accounts will see higher returns, but instant access accounts remain relatively low compared to fixed or limited access options.
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Mortgages: Borrowers may face higher rates on new fixed deals, but some longer-term products have seen reductions.
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Credit Cards: Those who carry a balance will pay more interest unless they clear their balance in full each month.
What Should Customers Do?
Review Your Accounts and Consider Your Options
Customers should review their accounts to understand how the changes affect them. For credit cards, consider paying off balances or switching to a different card if the new rate is unfavorable. For savings, compare rates and consider switching to higher-paying accounts if appropriate.
FAQs
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Can I avoid the credit card rate increase?
Yes, you can opt out, but your card will be frozen for new transactions. -
Will my mortgage rate change?
Existing fixed-rate mortgages are unaffected, but new deals will reflect the updated rates. -
How much more will I pay if my credit card rate increases?
For every £100 outstanding, a 1% increase means about 9 pence more per month.