According to sources, the firm hopes to have as big an impact on mortgages as it did on the savings market when it introduced its direct savings account in May 2003, cutting layers of unnecessary administration to make the product more competitive.
As ING has no high-street presence, its costs are kept down and there are no restrictions on customers accessing their funds.
No date has yet been decided for the mortgage launch, although ING is understood to be keen for the product to be available by the end of the year.
The UK mortgage market has seen several new entrants in recent years, including Royal Bank of Scotland's One Account, which combines the customer's mortgage with their other accounts to offset interest, and First Active, launched by RBS last year.
ING spent £15m on the launch of ING Direct, with an ad campaign and DM through Vallance Carruthers Coleman Priest and Claydon Heeley Jones Mason.
ING has denied it is considering offering a mortgage service.
.jpg)
.jpg)