ING Direct has dropped the interest rate on mortgages with low loan-to-valuation ratios. It is also waiving application fees on a couple of products.From July 9, the rate on new loans with LVRs below 80 per cent will be cut by as much as 28 basis points.The rate on the bank's Orange Advantage loan is 6.34 per cent if the loan is less than $250,000 and 6.16 per cent if the loan is more than $250,000. For loans with LVRs of less than 80 per cent, the Orange Advantage rate will be 5.98 per cent if the loan is between $250,000 and $500,000 and 5.88 per cent if the loan is more than $500,000.Similar discounts will apply to the Smartpack Mortgage Simplifier loan. ING Direct is Australia's fifth largest mortgage lender but it has been losing share over the past couple of years. In the 12 months to May its mortgage book grew 2.1 per cent, compared with system growth of 5.5 per cent.