MortgageWatch: More increases to longer term rates
Borrowers are facing an increasingly tough dilemma at the moment; that is when to fix long term.
Sunday, March 22nd 2009, 9:27PM
Recent lending statistics show there has been a marked shift from fixed term rates to floating rates. The logic behind this move is that floating and short term rates will keep falling and medium to long term rates will stay low.
However, hanging out for cheaper long term money is looking more and more unlikely.
The trend in interest rate changes this week has been for; floating rates to come down, little action in the short to medium term rates and long term rates to increase.
The other significant change during the past week was that two lenders, who offered good floating rates, have made increases to this term.
SBS Bank has upped its variable rate 15 points and Public Trust has raised its rate for this term 50 points.
Of key interest for borrowers is that Westpac increased its three, four and five year rates by 16, 15 and 25 points respectively. Likewise BNZ increased the rates for its four and five year Standard and Global Plus loans, with the former product going up 10 points and Global Plus going up 20 point each.
These changes mirror the trend of other banks, notably ASB which was the first to increase longer rates.
One positive is that ASB and its relations (Bank Direct and Sovereign) all lowered their six month rates on Friday.
The other big mover last week was CBS Canterbury which increased all its fixed term rates.
| « ASB's profit and mortgage book stall in Dec Qtr | Tasman Mortgages placed in liquidation » |
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