In The Loop Mortgages gets the chop

Broker-only lender In The Loop Mortgages is to close to new business as a result of the merger between its parent Stroud & Swindon and Coventry Building Society.

Coventry will now only lend through its broker brands Godiva Mortgages and Coventry Mortgages from September 1.

The society will continue to service existingITL Mortgages loans.

Linda Will, sales and marketing director at Stroud & Swindon and who has headed up In The Loop Mortgages since its launch in 2008, will be leaving the newly enlarged society on August 31.

Will told Mortgage Strategy that the decision to axe the ITL Mortgages brand had not come as a surprise to her.

She says: “one of the very essences of Coventry Intermediaries’ approach is the pricing offer through the society is the same through intermediaries. Where as we take the opposite view of pricing for the particular distribution channel and at times that has meant there were rates better on either side.

“But if you weren’t going to keep that rate differential there was virtually no rational for keeping an additional intermediary brand.”

Coventry says it is too early to say whether there will be any redundancies and full integration of the systems and staff will take around 18 months.

Colin Franklin, sales and marketing director of Coventry Building Society and managing director of Godiva Mortgages, says: “Brokers need clarity from a lender as well as competitive products and award-winning service, and by making this announcement now we want brokers to know what to expect on September 1. 

“Streamlining our brands also helps provide this clarity to brokers and their clients. Coventry Intermediaries has a trusted reputation for providing the most intermediary-friendly experience possible. We remain absolutely committed to our pledges, which includes no dual pricing.”

Meanwhile, Coventry is launching a number of new mortgages, including a two-year fixed rate at 2.99% at 50% LTV, with a £199 booking fee and £800 arrangement fee.