Westpac yesterday announced further hikes to fixed rate home loans for owner occupiers following material repricings at the end of April.

The bank has raised the pricing of two and three year fixed rate loans by 10 basis points across its portfolio of banking brands.

Two year fixed rate loans sold under the Westpac brand have been repriced at 1.99 per cent while the cost of three year products have risen to 2.08 per cent.

“The decision to increase some of our fixed rates has not been taken lightly,” the bank told mortgage brokers in a memo.

“The bank is currently operating in an historically low interest rate environment.

“In making this decision, we considered the different needs of our stakeholders.”

It is not clear how Westpac balances the needs of borrowers against depositors given that its rate offers on deposit products are among the lowest among the major banks and have not been improved since it began increasing fixed rate loans in April.

In a grab for extra margin Westpac boosted fixed rates on four and five year home loans by 30 basis points on 29 April.

The bank is continuing to maintain a pricing differential between fixed rate loans marketed under its flagship brand and its regional banking subsidiaries – St George, Bank of Melbourne and Bank SA.

The pricing of two year fixed rate loans sold through the regional brands has risen 10 basis points to 2.14 per cent – a 15 basis point premium to the corresponding product sold by Westpac.

Three year fixed rate loans sold through the regional brands have been repriced at 2.23 per cent.