The realignment of pricing in the mortgage market continued yesterday, when Westpac raised fixed interest rates for terms from one to five years – the third time in a month the bank has increased fixed rates.

ANZ and NAB made similar moves last week.

Westpac increased its three-year rate for owner occupiers by 61 basis points over the past months (including 30 bps yesterday) to 2.59 per cent.

Rates for other terms have increased by 25 to 40 bps over the past month. Westpac also hiked investor rates.

Westpac subsidiaries St George, BankSA and Bank of Melbourne also increased rates.

On Friday, ANZ increased its fixed home loans rates for the second time in three weeks. After raising its owner occupier three-year rate by 35 basis points on October 22, ANZ increased it by another 40 bps to 2.79 per cent.

Its one, two, four and five-year rates all went up 30 bps. The one-year rate is now 2.29 per cent. ANZ also increased investor fixed rates

And on Thursday, NAB increase its owner occupier P&I two-year rate by 25 basis points, its three-year rate by 51 bps, its four-year rate by 30 bps and its five-year rate by 10 bps. Investor rates went up by as much as 45 bps. Interest-only rates have also gone up.

NAB is still offering a one-year rate below 2 per cent (1.99 per cent), while ANZ’s one-year rate is 2.29 per cent, Commonwealth Bank’s 2.34 per cent and Westpac’s 2.24 per cent.

There is still competitive pressure in the home loan market but now the good deals are variable rates.

Last week, ING Bank cut the rate on its Mortgage Simplifier loan by 25 bps to 1.99 per cent. The loan is available to owner occupiers paying principal and interest.

ING joins ANZ, AMP, Aussie, Auswide Bank, Bank of Melbourne, Bank SA, St George Bank and Suncorp Bank in cutting variable rates over the past few weeks.