Yorkshire Building Society and Norwich & Peterborough Building Society (N&P) have completed their proposed merger.
The combined society will be known as Yorkshire Building Society and will have a combined 3.5 million members, 224 branches, and assets of approximately £33 billion.
The Yorkshire BS has committed to keeping all N&P’s existing branches for a minimum of two years, with the combined group now employing 3,850 staff. Yorkshire Building Society is the UK’s second largest building society, while N&P is the UK’s ninth largest society.
The Yorkshire has also recently acquired the mortgages and savings businesses of Egg Banking from Citigroup.
Norwich & Peterborough name to be kept
The N&P name will be retained as a separate and distinct brand within the Yorkshire group, similar to the Chelsea and Barnsley Building Society brands.
With mortgages customers, N&P borrowers will immediately transfer from its SVR of 5.35% to the Yorkshire’s SVR of 4.99%, making monthly repayments on an interest-only £100,000 mortgage £30 lower.
Savings protection under the FSCS
Each individually licensed financial institution in the UK offers £85,000 of protection to every saver in the event that the company were to go bust.
Under the Financial Services Compensation Scheme (FSCS) savers with both Yorkshire Building Society (including any brand of the Society) and N&P or Egg will be limited to one FSCS depositor protection limit of £85,000 per person, or £170,000 in total for joint accounts.
The Yorkshire BS has stated that it expects a relatively small number of savers to hold an aggregate balance exceeding the FCSC protection limit as a result of the merger.