Hopes of a short term recovery in the capital markets continue to fade amid another round of wholesale funding hikes.
Adelaide Bank yesterday confirmed an increase to its standard variable rate loan portfolio of 20 basis points, to come into effect within the next fortnight.
The bank also increased delivery rates on a range of other products, including low-doc loans, by between six and 30 basis points.
Chief general manager of Adelaide Bank’s wholesale mortgages Tim Piper, said all banks faced increased funding costs as a result of the global credit crisis.
“Like most banks we have continued to absorb some of the additional costs,” Mr Piper said.
“However we have found it necessary to pass on some of the increased costs to our customers and partners.”
Challenger also announced changes to its delivery rates this week.
Existing Challenger prime variable loans will rise by 20 basis points and existing prime low-doc and easy-doc loans will increase by 30 basis points.
All new prime loans and prime low-doc/easy-doc loans will increase by 10 and 20 basis points.
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