Nineteen lenders hike fixed-rates, variable rates tipped to follow

The direction of fixed rate changes has switched with variable rates likely to follow suit soon, potentially pointing to the bottom of the rates cycle, according to a recent report.

The Mozo Banking Roundup for November 2016 pointed to “a distinct change of direction” during the month with fixed rate increases “significantly” outnumbering cuts.

The report highlighted that a total of 19 lenders increased fixed rates during the month, with the largest number applying to three-year rates, and at least one for one-year rates.

It also underscored the fact that Westpac and the St.George group increased some of their fixed rates, particularly after being a previous rate leader for its four- and five-year terms.

The comparison website highlighted key changes:

• Greater Bank’s best in market rate of 3.74 per cent for four or five years has gone, with three- to five-year fixed rates increased between 11bp and 35bp.
• ING DIRECT increased fixed rates for all terms, by between 10bp and 40bp.
• Fixed rates for the St.George group were increased, by 24bp for two and three years, and by 54bp for five years; investor rates had an additional 6bp increase.
• Westpac’s Flexi First Option rate was increased from 3.89 per cent for three years then 4.29 per cent to 3.99 per cent for three years then 4.49 per cent. The bank’s $1,250 cashback for refinances offer ended. Westpac increased fixed rates too, matching the St.George group changes.
• NAB’s subsidiary UBank has announced an increase of 10bp, effective from this Friday.

[Related: Major bank CEO confirms mortgage rates will rise out-of-cycle]

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