Borrowers breaking fixed contracts

The lowest interest rates in at least 50 years have sparked a flurry of inquiries from Bay house owners about breaking fixed contracts, mortgage brokers say.

The competition between banks has also fuelled Tauranga’s heated real estate market with one real estate principal selling 23 properties under the hammer in an auction session on Thursday.

Yesterday HSBC had an 18-month fixed rate offer of 3.95 per cent while TSB’s two-year fixed rate was 4.29 per cent with an Air New Zealand mystery break for two. SBS was a notch higher at 4.35 per cent for 18 months to 24 months.



CHECK IT OUT: Keith Arden said he had fielded a lot of inquiries from people wanting to break out of their existing fixed rates, however every circumstance is different and it would come at a cost.PHOTO/JOHN BORREN