TSB and Public Trust have both raised fixed mortgage rates in the latest round of rate hikes. See and compare all mortgage rates here. TSB raised its six month mortgage rate by 25 basis points to 5.5%; two year by 25 bps to 6.9%; three year by 15 bps to 7.8%; and five year by 15 bps to 8.65%. This move comes within the same week of TSB raising its one and four year rates and follows Kiwibank's rate hikes yesterday. The latest round of mortgage rate hikes has come fast on the heels of the previous round. Wholesale interest rates have spiked up in recent weeks after the Reserve Bank of Australia increased its official rate earlier this month. Markets are picking the Reserve Bank of New Zealand will be forced to raise the Official Cash Rate as early as January next year, rather than the 'latter part of 2010', which it has indicated in recent statements. Despite the rate rises, Public Trust is offering some of the most competitive rates in the market. It left its six month rate unchanged at 5.5%. Public Trust raised its one year rate by 10 bps to 5.6%; two year by 40 bps to 6.95%; three year by 30 bps to 7.75%; four year by 20 bps to 8.3%; and five year by 30 bps to 8.6%.
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