Non-banks put mortgage rates up

PSIS and Southern Cross Building Society raised fixed mortgage rates this morning by between 5 to 25 basis points, but have left their variable rates unchanged.

Fixed mortgage rates have generally been rising over the last two months while the only rates remaining stationary are variable rates, which are expected to remain at current levels in the first half of 2010 as the Reserve Bank keeps the Official Cash Rate at its record low of 2.5 per cent.

PSIS this morning raised its six month and one year mortgage rates by 25 and 10 basis points (bps), respectively. The financial services co-op's new six month mortgage rate is 5.7 per cent and its new one year rate is 5.95 per cent.

Southern Cross made a range of mortgage rate changes from six month (up to 5.6 per cent) through to three year (to 7.8 per cent).

- INTEREST.CO.NZ