KEY POINTS:
The third of the country's four major banks has raised its interest rates, driven by lending pressures.
Westpac's two-year fixed mortgage rate has gone from 9.5 per cent to 9.7 and the three-year rate from 9.3 to 9.55 per cent.
The bank's four-year rate has also gone up, from 9.25 per cent to 9.4, and its five-year rate from 8.95 to 9.3.
The bank has kept a 30-month special term at 9.3 per cent a year and its capped home loan rate for a one-year term has moved from 10.3 to 10.45 per cent.
Westpac followed the ASB and ANZ National banks, which lifted their mortgage interest rates last week.
On Wednesday, ANZ National - New Zealand's biggest bank - increased its two-year fixed rate to 9.7 per cent and its three-year fixed rate to 9.55 per cent.
It said its hand was forced by continuing increases in the international cost of money.
ASB lifted fixed and floating interest rates by 20 basis points on Thursday, and has also increased some deposit rates, blaming the rises on the increased cost of borrowing overseas which it said was caused by uncertainty in foreign markets.
Westpac spokesman Craig Dowling said the bank was following suit.
"We held off for as long as possible but the rate change was ultimately inevitable, driven by continued pressure on the wholesale markets for lending."
The BNZ has left its rates unchanged.
