The Co-operative Bank has become the second major lender to lift long-term mortgage rates in response to rising wholesale interest rates.<\/p>\n
The bank\u2019s six-month rate has dropped by 14 basis points (0.14%) to 4.65%, while two- to five-year fixed rates had risen by 30 basis points (0.30%). The two-year rate now sat at 4.79%, three years at 5.09%, four years at 5.29%, and five years at 5.49%.<\/p>\n
Term deposit rates had also been lifted, with increases of 20 to 30 basis points on two- to four-year terms. The two-year deposit rate moved to 3.70%, three years to 4.00%, and four years to 4.10%.<\/p>\n
Chief executive Mark Wilkshire said wholesale rates had jumped by 0.5% to 0.6% since the Reserve Bank\u2019s last official cash rate (OCR) decision on November 26<\/a>.<\/p>\n “Longer-term fixed-rate mortgages are influenced primarily by wholesale interest rates and the future rate outlook, as opposed to the current OCR,” Wilkshire said.<\/p>\n “As long-term wholesale rates have risen quickly in recent weeks, on the expectation we are around the bottom of the interest rate cycle, we\u2019ve had to start increasing our longer-term fixed home loan rates. However, we\u2019ve reduced our short-term six-month rate.”<\/p>\n