Loach recently reached a milestone of 100 consecutive games for the Pools but moves onto pastures new.
Pools boss Craig Hignett has made no secret of his desire to shake things up as he looks to spearhead a charge for the EFL.
“I have really enjoyed it,” Loach told the club's official website. I have to thank Craig Harrison and Paul Jenkins for bringing me to the club.
“To have to try and follow in the footsteps of Trev [Carson] was always going to be a challenge but the fans took to me from minute one and I really enjoyed my time there and my football."
Loach's departure prompted Hignett to swoop for youngster Ben Killip who caught they eye last season with a string of fine performances.
Despite the Iron's relegation, Killip kept an impressive ten clean sheets and featured for England C.