ING DIRECT has announced it will cap the supply of wholesale funds available at the current delivery rate, however its retail mortgage business would be uneffected.
Brett Mansfield, ING DIRECT’s head of mortgage management, said the decision was made to preserve the bank’s funding supply.
“We have seen a significant inflow of business over and above what we ever anticipated as many of our competitors scale back significantly – Macquarie being the most notable example,” Mr Mansfield said.
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“It’s not a big market at the moment. If you look at the competitive set you’ve got GE Money, Adelaide Bank and Challenger still there and we will certainly remain competitive within that group.”
Mortgage managers that exceed agreed volumes will still be funded but at a higher delivery rate, he said.
“If demand exceeds our supply then we will need to go to market, and any additional funds would of course come with a very different delivery rate – more reflective of the current cost of funds,” Mr Mansfield said.
Despite ING DIRECT’s tight management of its wholesale funding arm, ING DIRECT’s executive director of mortgages Brett Morgan told Mortgage Business the lender’s retail arm would not be affected.
“ING DIRECT prides itself as being a true supporter of the third-party channel,” Mr Morgan said.
ING DIRECT has also confirmed it is in discussions with aggregator partners to review its commissions structure, with any changes to be announced in the weeks ahead.
