An Australian bank owned by one of the major lenders has increased its standard variable rates for owner-occupiers and investors.
UBank announced late last week an increase of 10 basis points on its owner-occupier (OO), investor (Inv), principal and interest (P&I) and interest-only (IO) SVRs.
This will take its SVR for OO P&I loans from 4.07 per cent to 4.17 per cent and the SVR - Investor (Inv IO / P&I) and SVR - IO (OO IO) from 4.36 per cent per annum to 4.46 per cent
UBank CEO Lee Hatton said the group is proud that UBank continues to offer customers one of the lowest variable home loan rates in the market.
“We consider any changes to pricing seriously, but due to a range of external factors at the moment and a need to achieve a balance between our home loan and deposit customers, it has been necessary for us to make changes to our SVRs,” Ms Hatton said.
“This ultimately allows us to continue offering our core banking products responsibly and sustainably to all of our customers – a commitment UBank takes very seriously’, she said.
UBank said that customers will continue to enjoy any discount they have off their SVR, whether it's a discount offer that applies from day one, or the lender’s 10 basis point loyalty discount available to loyal customers once they have held their home loan with the bank for three consecutive years.
The SVR changes for OO, INV, P&I and IO affect new and existing customers will take effect on 2 December 2016.
The rate hike comes just days after challenger bank ME announced increases of up to 15 basis points across its variable and fixed-rate home loans.
[Related: Non-major lifts variable rates]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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