ANZ will stop selling its Breakfree home loan package and is removing a number of home loan fees, as it works to revive its underperforming mortgage business.

The bank announced yesterday that the Breakfree package, which provides a discounted interest rate and allows customers to bundle other products with the loan, will be discontinued from next month.

ANZ will offer three home loan products - standard variable, fixed and basic (Simplicity Plus).

There will be no ongoing fees with any of the loans. The bank said that customers will not pay loan approval fees, administration fees, valuation fees, progress payment fees, loan renegotiation fees or guarantor administration fees.

Customers who want an offset account will pay A$10 a month.

ANZ group executive Australia retail and corporate, Mark Hand, said in a statement: “This is really good news for our home loan customers who only want to pay for the products and features they value and choose to use. We’ve been speaking to them and they want simple options with a competitive interest rate and that is what we are now providing.”

ANZ has been uncompetitive in the home loan market for years. According to APRA data, the bank’s mortgage book declined by 0.6 per cent over the 12 months to December, when the overall market grew by more than 7 per cent.

Over the past five years, ANZ’s book has grown 8.6 per cent, compared with system growth of 23.8 per cent.

In a market update earlier this month, the bank said it has made progress improving approval turnaround times and improvements to other systems and processes in its home loan business.