Yorkshire Building Society and Norwich & Peterborough Building Society (N&P) have today completed their merger. The combined society, known as Yorkshire Building Society, will now have 224 branches, 89 agency offices, assets of approximately £33 billion, 3.5 million members and will employ 3,850 staff.
Yorkshire and N&P have similar values and share a commitment to mutuality and to delivering excellent long-term value and exceptional customer service to members. Bringing the two organisations together emphasises the Yorkshire’s position as one of the UK’s strongest financial institutions which provides members with a secure alternative to the plc profit-driven model of Britain’s retail banks.
Yorkshire will maintain the strong links N&P has with its local communities and is committed to retaining a presence in all the locations where N&P is currently represented as well as supporting charities and good causes in the east of England and Lincolnshire through charitable giving, employee volunteering and affinity partnerships. The Yorkshire has also stated that the branch network will remain at the heart of the organisation and has given a commitment to retain all N&P’s existing branches for a minimum of two years.
The N&P name will be retained and operated as a separate and distinct brand within the Yorkshire Group, as part of the Society’s multi-brand strategy which also includes the Barnsley and Chelsea Building Society brands. The merger was approved by N&P’s members at a Special General Meeting on 22 August 2011 and confirmed by the Financial Services Authority in September.
N&P borrowing members on N&P’s standard variable rate (SVR) will immediately benefit by being transferred to the Yorkshire’s lower SVR of 4.99%. This will make repayments for a member with a £100,000 mortgage, £30* lower per month. All members who were paying N&P’s SVR of 5.35% will receive a letter in November to advise them of this benefit.
Iain Cornish, chief executive of the Yorkshire, said: “The enlarged Yorkshire will continue to be owned and run for the benefit of its members. We offer good value products, excellent customer service and the security of a strong financial organisation. From today, we will be working to integrate the societies and make sure there is a seamless transition. Members using N&P’s branches will still see the same name over the door and the same staff that they know and value.”
Directors of N&P stepped down from the Society on 31 October 2011. The chief executive of the combined Society will be the Yorkshire’s chief executive, Iain Cornish, until 31 December 2011, when Iain leaves the Society and is succeeded by Chris Pilling, who joins the Yorkshire from HSBC. The Board of the Society will be the Yorkshire’s Board.
* Based on an interest only mortgage.
Society members who are savers with both Yorkshire Building Society (including any brand of the Society) and N&P will be limited to one FSCS depositor protection limit of £85,000 per individual or £170,000 in total for joint accounts.
A relatively limited number of members are expected, as a result of this merger, to hold an aggregate balance exceeding the FCSC protection limit. These affected members will be allowed to reduce their aggregate balance to the FSCS limit within 60 days of the effective date without notice or loss of interest.
For more information on the FSCS rules visit www.fscs.org.uk
The Yorkshire is the second largest building society in the UK, It has recently successfully merged with Barnsley Building Society (31/12/08) and Chelsea Building Society (01/04/2010) and acquired the Egg mortgage and savings book and the Egg brand (31/10/11).
Barnsley Building Society, the Barnsley, Chelsea Building Society, the Chelsea, Norwich & Peterborough Building Society, N&P and Egg are trading names of Yorkshire Building Society. Use of the ‘Egg’ trademarks by Yorkshire Building Society is currently under licence from Egg Banking Plc.
Following the merger with N&P, the Yorkshire now has 224 branches, 89 agencies, assets of approximately £33 billion, 3,850 staff and 3.5 million members.
1 November 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).
