ASB Bank today became the first bank to lift lending rates after last week's quarter-point increase in the official cash rate, a move that will capture most borrowers.

From tomorrow, the bank will boost its variable, six-month fixed and 12 month fixed rates to 6, 6.1 and 6.45% respectively for new customers, with existing borrowers following on from July the 5th.

The hikes will capture more than two-thirds of mortgage holders, with 69% of residential mortgages on either floating or fixed rates for less than a year, according to Reserve Bank data.