Westpac says more mortgage customers face higher rates

“We've made good progress, but there is still more to go,” chief executive Catherine McGrath told TMM, adding that the majority of fixed-rate customers have opted for one-year terms.

Westpac's floating rate is currently 8.64% and its fixed rates between six months and two-years are all above 7% with the standard one-year rate at 7.95% and its “special” one-year rate at 7.35%, although most customers would qualify for the latter rate.

But many customers still face one more step up in rates. Westpac is expecting this process will be completed by Sept 30 next year, McGrath says.

But 67% of mortgage holders are still three months ahead on their repayments, she says.