Westpac ups mortgage rates

Less than a day after Parliament's Finance and Expenditure Committee said it was "surprised and concerned that longer-term mortgage rates had risen recently," Westpac has announced it is to raise three and five year mortgage rates.

Westpac raised its three year mortgage rate this morning by 10 basis points (bps) to 6.95 per cent and its five year rate by 30 bps to 7.90 per cent. It is the last major bank in New Zealand to make the move.

Of the banks, Westpac's new five year rate is the lowest. ASB and SBS are offering 8 per cent; BNZ and ANZ 7.99 per cent; and Kiwibank, National Bank and TSB 7.95 per cent. Long term mortgage rates have risen around 150 basis points since early February as long term wholesale rates have risen globally.

Investors are worried about heavy government borrowing and concerns that money printing by some central banks will fire up inflation again.

- INTEREST.CO.NZ