ING Direct removes fees on fixed rates
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ING Direct has temporarily removed all product and arrangement fees on its range of two, three and five-year fixed rate mortgage deals.
It is now offering a two-year fixed purchase/remortgage deal at 3.54% up to 60% LTV, a two-year fix at 3.64, up to 75% LTV and a 4.34% deal up to 80%, all with no fees.
Julian Hartley, mortgage director of ING Direct, says the lender is looking to increase its mortgage business and has removed the fees.
He says: “We have been seeing increased speculation about Bank of England Base rate increases and this is already feeding through into more enquiries about fixed rate products.
“Our economists are advising us that when rates do rise, they may do so more steeply than many pundits are predicting. It is interesting to note that historically when rates do start to increase it is at a faster pace than expected.
“We are looking to expand our mortgage business and it makes sense to increase the appeal of our fixed rate products at a time we predict they are going to be more in demand.”
David Hollingworth, mortgage specialist at London & Country Mortgages, says ING Direct’s range was already competitive and by scrapping the fees it may tempt more borrowers to look at remortgaging.
He says: “The range will appeal to those with smaller mortgages where traditionally lenders charge high arrangement and product fees.
“A lot of borrowers are unsure about what the base rate will do and this may encourage them to remortgage.”
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Readers' comments (8)
colin chapman | 13 Apr 2011 2:40 pm
they will get swamped with all the marginal cases that are tight on LTV, that clients before today were unwilling to chance a booking fee on. Could be a very labour intensive exercise
hope the wheels do not fall off from a service perspective!!!!
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Anonymous | 13 Apr 2011 4:04 pm
They refunded their booking fee if the case was declined due to a down valuation Colin so no issues with service I think!
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dave whitwam | 13 Apr 2011 5:50 pm
As they only allow my network and a couple of others to sell their products I cant see them falling off either... Ive had offers out in days and valuations instructed and carried out within 48 hrs..long may the restricted usage continue - the future definately is orange as someone once said!
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Luke Atkinson | 13 Apr 2011 5:55 pm
Great, HSBC and ING all making it easier for you people still in the industry!
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Anonymous | 13 Apr 2011 10:09 pm
These desperate measures to attract funds are a sure sign that the base rate will stay at 0.5% for some time.
Other lenders will surely follow ING in removing fees.
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Calvin Oram | 13 Apr 2011 11:34 pm
I'm sure the Dutch tax payer will be over the moon to hear this. I thought the days of lenders chasing volume was a thing of the past. Perhaps if they developed a proper intermediary strategy they wouldn't have to price to the bottom of the market.
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colin | 14 Apr 2011 5:36 pm
anon 4.04pm 13/04/2011
They refunded their booking fee if the case was declined due to a down valuation Colin so no issues with service I think!
are you sure about this ??? i ve had a case with a down val and their website states its NON REFUNDABLE!!!....
don t get me wrong their rates are excellent. I use them myself as my network is one of their chosen routes to the broker market. Just thought it a bizarre strategy to removal fees in the current market.
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dave whitwam | 14 Apr 2011 6:20 pm
Calvin, the dutch tax will be over th emoon as they all but paid back their handout, unlike the UK banks. They also have low aspirations in terms of volume again unlike the huge uk banks... Clearly you know little of what they are about or you work for a high street bank and are simply running scared... I would suggest you get your facts straight prior to making ill informed comments..
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