9 Feb 2015

TSB Bank: High demand for 10-year mortgages

4:16 pm on 9 February 2015

TSB Bank won't say how much money it has available to lend on its 10-year fixed home loan but does say it is experiencing overwhelming demand.

Auckland housing

Photo: 123RF

The Taranaki-based bank is offering the mortgage at 5.89 percent for 10 years to both owner-occupiers and property investors who have at least a 20 percent deposit.

TSB's floating mortgage rate is currently much higher at 6.74 percent and its five-year fixed rate is 6.5 percent.

The bank's chief executive Kevin Murphy said it had significant funding locked-in from the wholesale market, which he believed was adequate.

"[It] will enable us to meet the demand, which we expect to be significant."

Mr Murphy said demand had already been overwhelming since launching the offer on 5 February.