Coventry Intermediaries has today pledged not to offer linked products when a borrower applies for one of its mortgage products.
The announcement follows six other commitments the building society made to intermediaries in 2007, including a promise not to dual price and not to cross sell.
Linked products require borrowers to take additional products such as insurance policies or savings products to qualify for a specific mortgage product.
Sales and marketing director Colin Franklin says: “We were the first lender to make public commitments to the sector and we have remained true to them throughout the economic downturn. Through our pledges we aim to help brokers to give the best possible advice to their clients. Saying no to linked products is a logical extension to our pledges which includes no dual pricing and notice of product withdrawal.”
Personal Touch Financial Services sales and marketing director Dev Malle says: “Coventry BS made some brave decisions when it led the lender market in introducing its pledges. Since then, if anything, the pressure for them to pull back on these has never been greater. Instead, it has strengthened the pledges. I sincerely hope my colleagues in the intermediary sector do not underestimate the value of these pledges and appreciate how important pledges such as no dual pricing are at the moment.”
The building society is currently conducting a survey to see how brokers view the pledges. The results will be published in October.
Last month, Coventry Building Society restructured its intermediary arm following the merger with Stroud & Swindon Building Society which saw the In the Loop Mortgages brand scrapped for new business.