Big and small bank rate changes

Lots of changes today. The big bank move sees BNZ introduce a new, market-leading, advertised four-year mortgage interest rate. While it is a leader, four-year terms are not that popular with borrowers.

This new rate is limited to borrowers who have at least 20% equity in the deal.

Amongst the small banks, the Co-operative Bank is raising its six month, one and two year rates between 5 and 15 points. Its six-month rate rises 10 basis points to 5.55%, its one-year rate increases 15 basis points to 5.40% and its two-year rate lifts 5 basis points to 5.55%.

Meanwhile TSB is increasing its one-year and three-year advertised rates. It loses its number one position with one-year rates, by increasing it 20 points to 5.40%.  TSB has lifted its three-year rate by 15 basis points to 5.90%.