Yorkshire Building Society today announces that it expects to complete its acquisition of the mortgage and savings business of Egg Banking plc on 31st October 2011.
The Egg business comprises a £2.5 billion* savings book and a £430 million* mortgage book. As part of the transaction the Yorkshire is also able to continue using the Egg brand.
Following completion of the transaction, existing Egg borrowers with branded Egg or Pi mortgage accounts whose rate is set at or linked to the Egg or Pi standard variable rate (SVR) will immediately benefit by being automatically moved to the Yorkshire’s SVR. The current Yorkshire SVR is 4.99% while the equivalent rate for Egg borrowers is 5.29% and for Pi borrowers 6%.
Egg savers and borrowers will also become members of the Yorkshire Building Society, one of the UK’s strongest financial institutions, on completion of the transaction.
Members who are savers with both the Yorkshire Group and Egg at the time the transaction completes will be covered under the Financial Services Compensation Scheme (FSCS) by one depositor protection limit of £85,000 for individuals or £170,000 for joint accounts. The Yorkshire will put in place measures to allow the relatively limited number of members who are expected to exceed the FSCS protection limit as a result of this transaction to reduce their balances without notice or loss of interest within 60 days of the completion date. The Yorkshire will write to such affected members after completion of the transaction.
The acquisition is to be implemented by a banking business transfer under Part VII of the Financial Services and Markets Act 2000. This process is subject to approval by the High Court, which amongst other considerations will take into account the opinion of the Financial Services Authority (FSA).
*Approximate figures as at 30/6/2011
Yorkshire Building Society, which has its head office based in Bradford, is the UK's second largest building society with approximately 2.6 million members, 178 branches and assets of over £30bn. It has recently successfully merged with Barnsley Building Society (31/12/08) and Chelsea Building Society (1/04/2010). Yorkshire has also announced a merger with Norwich & Peterborough Building Society (N&P) which has been approved by N&P members and, subject to confirmation by the FSA, is expected to complete on 1st November 2011.
30 August 2011
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
