Skipton Building Society today announced it was to merge with Scarborough Building Society after being approached by its smaller rival.
The deal, which should be completed by the first quarter of next year, will create a top five building society with around 860,000 members and £16 billion of assets.
But in a bid to preserve the capital reserves of the enlarged group, members of the two societies will not receive a windfall.
Which? Money editor Martyn Hocking said: ‘Once again we are looking at a reduction in choice and competition for consumers.’
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