Powered by MOMENTUM MEDIA
the adviser logo
Lender

Lender pulls investment product

by Charbel Kadib5 minute read
ING

A non-major has announced the withdrawal of an investment product due to “low demand” from customers.

ING has announced that it will no longer offer an “Interest in Advance” option for its investment home loan customers.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The option enabled investors with interest-only terms to fix their rate for a 12-month period and pay down their annual interest repayments – typically incurred throughout the year – in one upfront payment.

The lender told The Adviser that the product has been withdrawn because of “low demand” from its existing investor mortgage customers, who, according to the latest statistics from the Australian Prudential Regulation Authority (APRA), make up 18.2 per cent of the bank’s total portfolio.

Advertisement
Advertisement

ING has said that it will contact Interest in Advance customers 30 days before their current term expires to remind them that they will not be able to access the Interest in Advance feature moving forward.

Turnaround times fall but broker share slips

Meanwhile, in the same note to brokers, ING noted an improvement in its turnaround times for home loan applications.

According to the lender, its turnaround times have been reduced to within two business days from submission date to credit assessment decision.

This comes amid data from research group Momentum Intelligence, which has highlighted the competitive utility of short turnaround times in the broker channel.

However, according to the latest mortgage and competition index from the Australian Finance Group, ING’s share of broker lodgements fell over the December quarter, from 3.6 per cent to 2.9 per cent.

Despite the decline in ING’s share of the broker channel over the quarter, the bank retains the second largest share of broker lodgements among independent non-majors, behind only Macquarie (10.2 per cent).    

[Related: Lender withdraws mortgage pre-approval process]

Lender pulls investment product
ing ta
TheAdviser logo
ing ta

Charbel Kadib

Charbel Kadib

AUTHOR

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

READ MORE
andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more