Mortgage interest rates go up again
5:00AM Thursday February 28, 2008
By Adam Bennett
Global credit market turmoil is tightening the squeeze on New Zealand households, with the country's largest bank, ANZ National, raising key mortgage interest rates once again in response to "severe" market conditions.
Fixed mortgage rates for both of the bank's brands rose, with the most popular two-year rate up by 20 basis points to 9.7 per cent and the three-year rate up 25 basis points to 9.55.
History suggests the other major banks are likely to follow suit.
Floating mortgage rates have also been on the rise, with ASB Bank increasing its rate 20 basis points to 10.75 per cent.
Changes in world credit markets since the US "sub-prime" crisis last year have led to a sustained increase in the cost of the funding banks use to meet their lending requirements, ANZ National Bank said yesterday.
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