News Bites

Sub-4% rates over for SBS, TSB

Two smaller banks have followed the big four in ending their sub-4% special rates, as mortgage rates creep up to more normal levels. 

SBS, led by Shaun Drylie (pictured), has moved its two year special rate to 4.29% up from 3.95% as of this morning. While TSB moved its 3.95% one year rate up to 4.05%.

The two challenger banks join the likes of ANZ, BNZ, ASB and Westpac who have shifted their special rates past the 4% level in recent weeks. The moves come after a short-lived public price war, with rates dipping to once in a generation levels.

A host of top mortgage advisers, such as Loan Market's Bruce Patten, do not believe we will see sub 4-% rates again soon. While research firm CoreLogic believes the price war marked a land-grab for prime customers.

HSBC Premier and TSB have the market's lowest two year rates at 4.29%.