ANZ, National raise fixed mortgage rates

ANZ and National have today increased their three, four and five year mortgage rates by as much as 35 basis points.

The banks were responding to rises in longer term bond yields on wholesale markets.

Long term mortgage rates had stabilised after a sharp rise in mid-March, but wholesale markets have pushed rates higher in the last couple of weeks on fears globally of heavy government borrowing.

The imminent budget here has focused thoughts locally, with many expecting Finance Minister Bill English to announce bond issues over the next four years of close to $50 billion later today.

Prime Minister John Key has said the primary focus of the budget due at 2pm today is to avoid a credit rating downgrade, given it would push up mortgage rates by 1.5 per cent. Long term mortgage rates have bounced around 2 per cent from their late February lows.

ANZ and National increased their 3 year fixed rate to 6.85 per cent from 6.75 per cent. They lifted their 4 year rates to 7.4 per cent from 7.15 per cent and their 5 year rates to 7.85 per cent from 7.5 per cent.

See all mortgage rates from all the banks in this rates table.

- INTEREST.CO.NZ