St George Bank has partially bucked the trend set by Australia’s big banks by lowering interest rates on some of its fixed home loans after most its rivals completed a second round of rate hikes.

St George lowered its rates on one-year and two-year fixed home loans on Wednesday, while lifting rates for longer-term home loans in line with three of its competitors.

The Westpac-owned bank dropped its rate on one-year fixed mortgages by 48 basis points to 5.44 per cent, and sliced five basis points off the two-year fixed mortgage to 5.94 per cent.

But rates on three, four and five-year fixed mortgages all increased by between 34 basis points and 69 basis points, leaving both four and five-year term loans now costing customers 7.14 per cent.

St George’s rivals attracted criticism when they raised interest rates on fixed home loans this week after Commonwealth Bank (CBA) hiked interest rates on a range of products last Friday.

CBA on Monday raised by 10 basis points the rates on its standard variable home loan, fixed home loans and Residentially Secured Better Business Loan, citing high costs of term funding for the decision.

National Australia Bank (NAB) also hiked rates on a range of fixed home loans on Monday by as much as 40 basis points, taking their fixed rates to between 5.09 per cent for a one-year loan to 7.79 per cent for a 10 year term.

NAB spokeswoman Luisa Ford said the bank had raised rates on three-year fixed home loans by 120 basis points since April 14, and by 110 basis points on five-year fixed mortgages since May 18.

NAB, CBA and Westpac all raised rates on fixed mortgages in April, with ANZ moving earlier.

Ms Ford said fixed rates are determined by the fixed wholesale funding market which has been “moving very quickly over recent months”.

But NAB has no plans to raise interest rates on standard variable mortgages, she said.

Westpac Banking Corporation on Tuesday raised rates on fixed home loans by up to 50 basis points.

Westpac’s one-year fixed mortgage rate was lifted 10 basis points to 5.49 per cent, its two-year fixed mortgage rate increased by 20 basis points to 5.99 per cent, and all other rates on terms up to 12 years were hiked by 50 basis points.

A 10-year fixed home loan from Westpac will now cost new customers 7.79 per cent in interest per annum.

ANZ Banking Group spokeswoman Cherelle Murphy said its fixed and variable interest rates on loans in any category are under review, but the bank currently has no specific plans to change them.

ANZ’s rates stand at 5.35 per cent for a one-year fixed home loan, 6.34 per cent for a three-year term, and 9.39 per cent for a 10-year term.

Standard variable rates on mortgages from the major lenders currently stand at 5.74 per cent from NAB and CBA, 5.7 per cent from BankWest, 5.79 per cent from St George, and 5.81 per cent from Westpac and ANZ.

AAP