The big four banks have raised fixed mortgage rates on the back of increased funding costs.

National Australia Bank (NAB) yesterday became the last of the big four banks to raise fixed mortgage rates, with the one-year fixed rate up 50 basis points to 6.59 per cent, and its two-year fixed rate up 40 basis points to 7.29 per cent.

NAB’s three-year fixed rate increased 40 basis points to 7.59 per cent.

Westpac, CBA and ANZ have also raised their fixed mortgage rates in recent weeks.

CBA was first off the mark a week ago, citing funding costs as the reason for raising its fixed mortgage rates. The bank’s one-year offering is now up 45 basis points to 6.64 per cent, and its two-year fixed-term rate is up 50 basis points to 7.34 per cent.

The five-year fixed rate from CBA increased 25 basis points to 8.04 per cent.

Westpac also raised its fixed home loan rates late last week, adding 35 basis points to its one-year fixed term mortgage, taking it to 6.54 per cent.

The bank’s two-year fixed rate mortgages were up 20 basis point to 7.19 per cent, while its 5 year loan increased 10 basis points to 7.94 per cent.

ANZ’s one-year fixed rate has also gone up 80 basis points to 6.5 per cent for new customers, and its two-year fixed rate loan will rise by 65 basis points to 7.34 per cent, while the bank’s five year mortgage will rise 30 basis points to sit at 8.04 per cent.

The banks attributed the rise in fixed mortgage rates to rising funding costs brought on by the sustained lack of liquidity that has been symptomatic of the GFC.

Sources: WAtoday.com.au, Mortgage Business