Your Board unanimously believes that this proposed merger is in the best interests of the Yorkshire’s members. It is firmly of the view that a merger with Chelsea:

• represents an exceptional opportunity for the Yorkshire to enhance its ability to compete effectively and deliver greater value to the members in the future through added scale and by improving efficiencies;
• will ensure that the Yorkshire remains a financially secure and safe place for members’ savings;
• provides wider access to the mortgage and savings markets by adding Chelsea’s predominantly southern based branches to our own branch network;
• enables the Yorkshire to build on Chelsea’s strong brand presence in key markets by retaining and developing ‘Chelsea’ as a separate brand; and
• will allow significant cost savings to be realised through the removal of duplicated activities whilst maintaining the level of service we currently provide to members.

You do not need to change anything in the way you deal with us – you will continue to be able to use our branches and agencies, telephone, postal and website services as you currently do.

There will be no changes either to the interest rates or to the terms and conditions of any Yorkshire saving accounts or mortgages as a result of the merger. As the benefits of the merger are realised, your Board believes that the enlarged Society will be even better placed to continue to deliver good value products and excellent service to members, underpinned by greater financial strength.

Yes, the Yorkshire intends to remain independent and committed to mutuality, which your Board firmly believes is in the best interests of current and future members.

The enlarged Society will continue to be called Yorkshire Building Society. Chelsea Building Society will operate as a separate brand of the Yorkshire, similar to the way we operate under the Barnsley Building Society name.

In 2008 the Financial Services Authority (FSA) introduced temporary rules which allow separate compensation cover for customers with deposits in two merging building societies. In June 2009 these rules were extended to 30 December 2010.

Read our  Financial Services Compensation Scheme information leaflet for more information about your FSCS cover when the Yorkshire & Chelsea merge.

The Yorkshire is committed to supporting local communities and the merger will not affect this. The enlarged Society will continue to do this through charitable giving, employee volunteering, sponsorship and affinity partnerships to maintain the strong community connections of both the Yorkshire and Chelsea.

No. In order to protect the financial strength of the enlarged Society there will be no distribution of reserves by way of bonus to members of either the Yorkshire or Chelsea.

Your Board has taken into account the difficulties Chelsea has experienced and believes that members’ interests have been protected through the extensive due diligence we have carried out on Chelsea’s business, together with steps being taken to strengthen the capital and funding position of the enlarged Society. The Yorkshire will therefore remain a strong, financially secure and safe place for members’ savings.

Yes. Eligible Yorkshire members will be able to vote on the proposed merger at a Special General Meeting (“SGM”) of the Yorkshire to be held in Bradford on Tuesday 26 January 2010 at 2.30pm. The Yorkshire’s members will need to vote in favour of the proposed merger if it is to go ahead.

Over the next few weeks an SGM voting pack, which will contain a complete guide to the merger and a voting form, will be sent to all members eligible to vote and it will set out the different ways to vote. If you believe you are eligible to vote and have not received your pack by 22 December 2009, please telephone the Merger Helpline on 0845 1669 200 or email merger@ybs.co.uk.

Yes. If you are both an eligible borrowing member and an eligible shareholding member you are entitled to a vote on both the savers’ (shareholding members’) and borrowing members’ resolutions. You will receive two SGM voting packs and should complete both voting forms and return them in the prepaid envelope provided. Alternatively, you will be able to vote online. Please note that you may not receive both packs on the same day.

Subject to the members of both societies voting in favour of the merger at their respective SGMs and to certain other conditions being met, including confirmation by the Financial Services Authority, the merger is expected to take effect on 1 April 2010.