Variable mortgage interest rates up

NATIONAL Australia Bank has lifted its variable mortgage interest rates by 10 basis points.

NATIONAL Australia Bank has lifted its variable mortgage interest rates by 10 basis points.

The rise, which takes effect on Monday, will lift its standard variable home loan interest rate to 9.46 per cent a year.

The rise, announced while much of Australia was on holiday for Anzac Day, follows the ANZ Banking Group's decision yesterday to raise rates for the second time this year.

Both banks' rises have been made without the prompting of the Reserve Bank of Australia. 

NAB said the change to the standard variable rate reflected "sustained increases to long term wholesale funding costs''.

At 9.46 per cent, NAB's variable mortgage rate is the second highest among the major banks.

ANZ Banking Group and St George Bank lead the pack at 9.47 per cent.

Commonwealth Bank of Australia is next at 9.44 per cent, while Westpac Banking Corporation has the lowest at 9.37 per cent.

Today's move from NAB follows the ANZ Banking Group's decision yesterday to raise rates its variable mortgage rate by 10 basis points.

The Reserve Bank of Australia's (RBA) next board meeting is scheduled for Tuesday, May 6.

It is the second time this year NAB has raised its lending rates independent of an interest rate hike from the central bank.

When the RBA did raise rates 25 basis points in March, NAB lifted its own rates 35 basis points.

NAB said the new base variable rate for new customers with loans in excess of $250,000 will be 8.75 per cent a year.