ING to tighten up lending

ING Direct has announced changes to its lending policies relating to mortgages with high loan to valuation ratios. Maximum LVRs on mortgages for a home purchase are now 90% or 85% on refinanced loans from another institution. ING Direct will require applicants to demonstrate 5% genuine savings (for 3 months) for all applications where Loan Mortgage Insurance applies.

This will result in ING Direct no longer offering Genworth's HomeBuyer Plus product. To be eligible for current policy, applications must be received by ING Direct no later than 20 March 2009 and unconditionally approved by 15 April 2009. This applies to existing pipeline applications, including pre-approvals.