KEY POINTS:
ANZ and The National Bank have increased their variable home lending rate by 25 basis points, despite a recent decision by the Reserve Bank to leave rates on hold.
The variable rate is now 10.95 per cent, the highest among retail banks, although most variable rates are above 10 per cent. There has been little movement among banks' fixed rates, aside from Kiwibank's two-year rate reduction to 9.29 per cent from 9.60, for borrowers with at least 20 per cent equity in their purchase.
Mortgage lending rates have been rising as banks are faced with higher borrowing rates offshore, as markets adjust to the sub-prime credit problems. Banks have also been lifting lending rates to attract cheaper domestic funding, with rates of 8 per cent and 9 per cent on offer.
