ING DIRECT has dropped the interest rate on its two, three, four and five year fixed rate residential mortgage products, to 7.24 per cent p.a, 7.59 per cent p.a, 7.84 per cent p.a, and 7.94 per cent p.a respectively.
The banks executive director of mortgages Lisa Claes said that even though fixed rate volumes are currently low across the industry, ING DIRECT expects to see an increase in fixed rate applications in the current rising variable rate environment.
Loan Market Group chief operating officer Dean Ruston said there is currently a large discrepancy between standard variable and fixed rates and he believes borrowers have missed the boat on fixed rates. The average fixed rate is now more than 2 per cent greater than the average standard variable rate, he said.
Source: The Advisor