The Norwich & Peterborough BS has joined the ever-growing Yorkshire Building Society brand. Here's what you need to know.
The merger officially took place at the start of November so if you're a customer with either building society it's a good idea to find out how you'll be affected now.
Here's what it means for you:
Mortgage customers
If you have a mortgage that tracks or follows the N&P standard variable rate (currently 5.5%) you'll start paying the Yorkshire BS's SVR (currently 4.99%) on your outstanding balance as soon as the merger takes place.
The YBS's SVR rate is 0.51% lower than that charged by N&P at the moment, but there is every chance that this will change before November. Make sure you keep an eye on it and switch if it's no longer the most competitive option for you.
If you're on a fixed deal with N&P the rate you pay on your mortgage won't be affected by the merger until the end of your fixed term agreement.
Savings customers
If you have less than £85,000 in savings then you don't need to worry about the merger.
However, if you have savings of more than £85,000 (or £170,000 in joint accounts) you need to make sure your money will still be protected by the Financial Services Compensation Scheme once the two building societies join forces.
The Yorkshire Building Society currently shares an FSA banking licence with the Chelsea BS and Barnsley BS, and from October also with Egg. For this reason you need to make sure that your combined savings in sole named accounts with any of these building societies doesn't exceed £85,000; and that the total you have in joint accounts is less than £170,000.
If you find that you hold more than this you ought to consider moving any surplus to a bank or building society that isn't linked to the Yorkshire Building Society brand so that it remains fully protected.
N&P have confirmed that you should be able to move any excess funds at your discretion, even if it means breaking the terms of a fixed term account.
N&P branches
The Yorkshire Building Society plan to keep the Norwich & Peterborough BS brand going after the merger.
They have also committed to keeping all existing N&P branches and agencies open for at least 2 years after the switch which will be reassuring if you work for them, or regularly use their branch services.
