ASB and its subsidiaries Bank Direct and Sovereign have this morning raised fixed mortgage rates by between 5 and 25 basis points (bps). Sovereign's new five year mortgage rate is 8.75%, with the margin between its and ASB's three, four and five year rates widening from 10 to 15 basis points. See and compare all mortgage rates here. (Corrected from earlier version saying ASB had raised 6 month, 3, 4 and 5 year rates). ASB raised its one year mortgage rate by 10 bps to 5.8%; 18 month by 10 bps to 6.4%; and two year by 20 bps to 6.95%. Bank Direct followed suit. Sovereign raised fixed rates across the board, with its six month rate up 5 bps to 5.65%. Longer term fixed mortgage rates have been rising recently, and Sovereign's move to raise its six month rate (albeit slightly) adds a new dimension to the fixed rate rises. Shorter term and variable rates have been falling or at least remaining steady in recent weeks, with a number of banks (including ASB, BNZ, Kiwibank and Westpac but not ANZ National) lowering variable rates to as low as 5.59% in BNZ's case with its Total Money rate. Southern Cross Building Society today lowered its six month mortgage rate from 5.49% to 5.2%.
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