Wellington, June 21 NZPA - ANZ National Bank, Kiwibank and Westpac are increasing some mortgage rates after the Reserve Bank of New Zealand hiked the official cash rate by 25 basis points to 2.75 percent earlier this month.

ASB was the first to move when it increased its variable rate to 6 percent.

ANZ is raising its variable rate to 5.95 percent and National Bank is increasing its variable rate to 5.99 percent. Both brands are owned by ANZ National, which is owned by Australia's ANZ. Both banks have added 10 basis points to their six month and one-year rates.

Kiwibank is increasing its variable and revolving mortgage rate by 25 basis points to 5.9 percent per annum. The change will be effective from tomorrow for new customers and from July 6 for existing customers.

The bank has also increased its six-month fixed rate from 5.99 percent to 6.10 percent and the one-year rate from 6.35 percent to 6.45 percent, effective tomorrow.

Kiwibank has also introduced a new home loan offer that caps the standard floating rate to no more than 6.5 percent for 12 months. The capped variable rate option is available for a fee of $250.

The rise in the official cash rate was the first since July 2007, and further increases are anticipated in coming months.

Westpac is raising its variable home lending interest rate by 0.20 percent. The move will now see the Choice's Everyday rate at 5.85 percent per annum and the standard rate at 6.49 percent. The rates are effective from tomorrow for new customers and from July 12 for existing customers.

Bruce McLachlan, general manager retail banking, said the new rates were in response to the increase from the Reserve Bank and are competitive in the market.