Lloyds axes C&G intermediary arm

Lloyds-owned mortgage provider Cheltenham & Gloucester is to stop accepting applications via its intermediary business at the end of the month.

In a note to brokers, the company announced it would be closing the brand from 31 March, although C&G mortgages will remain available to customers on a direct basis.

Today's announcement does not affect the C&G branch network or its savings business.

Lloyds also confirmed 570 jobs will be lost across the group as part of wider job cutting measures.

The note to brokers states: "There will be no impact on your clients' existing mortgages or on any applications already submitted. Customers can continue to manage their accounts through our branch network and by telephone."

The bank says it will write to all customers who are in the process of taking a new C&G mortgage, or have made changes to their mortgage via an intermediary.

Any new intermediary applications must be received in full before midnight on 31 March in order to be processed.

The lender says the C&G intermediary website will continue to be available with key forms and contact details after midnight on 31 March; however the caseflow application system will be unavailable after this time.

Mike Jones, sales director, mortgages, says: "This decision allows us to remove overlap and thereby focus our broker activity via the Halifax Intermediary business.

"This approach ensures that across Halifax, BM Solutions and Scottish Widows bank, the group can continue to offer a focused and all encompassing proposition to brokers and their clients."

Ray Boulger, senior technical manger, John Charcol says the bank has made it clear for some time Halifax Intermediaries will become its key mainstream mortgage lending brand.

"Essentially C&G has withered on the vine for some time, but C&G for Intermediaries never dual-priced where Halifax Intermediaries has continued to do so.

"By getting rid of C&G, this makes the likelihood of dual pricing even greater."