About the merger
Skipton Building Society merged with Scarborough Building Society on 30 March 2009. Detailed information regarding the merger is set out in the Merger Notification Statement, which has been posted to all qualifying Scarborough members. Some frequently asked questions and answers are shown below, but if you have any other enquiries, call the Skipton merger helpline on 0800 345 7041*.
This is a real opportunity for the North Yorkshire-based societies to create an enlarged Society that is even better placed to deal with any future uncertainties in the financial marketplace. The two societies are well matched, having similar business models, a strong geographical fit and shared commitment to mutuality, their members, their people and their local communities.
Scarborough Building Society saw difficult trading conditions leading to a substantial impact on profit and a resultant weakening capital position. In addition, the board of Scarborough considered the possible impacts of continuing house price falls and the impending recession in the UK, and has concluded that the effect would be an unacceptable reduction in its capital resources and that, to fully protect the interests of its members, it should approach Skipton Building Society as its preferred merger partner.
The enlarged Society is a top five building society with approximately 860,000 members and over £16bn of assets.
The merger became effective on 30 March 2009.
The combined Society is called Skipton Building Society.
Yes, both societies are fully committed to mutuality and this ethos will continue to be reflected.
In the current financial climate, it is considered essential to avoid lengthy delays to the merger process and to preserve the capital strength of the enlarged Society. As such, the merger proceeded under section 42B(3)(b) of the Building Societies Act on the basis of a board resolution of Scarborough, as permitted by a direction given by the Financial Services Authority (FSA). The FSA also consented to Skipton proceeding by a resolution of its board of directors. As such, this means that a vote by Skipton and Scarborough members was not required.
There will be no 'windfall' or 'bonus' payment for members of either society. In the current market, such a payment is inappropriate as it would reduce the enlarged Society's capital levels at a time when financial strength is paramount.
However, Scarborough's members will benefit from Skipton's lower SVR and similar or better savings rates.
Members of both societies also benefit from the additional assets, capability and expertise each brings to a merger and from being part of what is now an even more significant force in the mutual building society sector.
In the current financial climate, it is considered essential to avoid lengthy delays to the merger process and to preserve the capital strength of the enlarged Society. As such, the merger proceeded under section 42B(3)(b) of the Building Societies Act on the basis of a board resolution of Scarborough as permitted by a direction given by the Financial Services Authority (FSA). The FSA also consented to Skipton proceeding by a resolution of its board of directors. As such, this means that a vote by Skipton and Scarborough members was not required.
After the merger
Following the merger with Scarborough Building Society our branch network has increased from 85 to 90 branches so you can now visit us in our new branch locations in:
What's more, we now have two branches located in York and Leeds.
All Scarborough savings accounts moved to the enlarged Society on similar, or better, terms and interest rates to those applying prior to the merger.
All Scarborough borrowers previously making payments at or linked to Scarborough's standard variable rate (SVR) will be transferred to Skipton's SVR.
These relationships will continue in line with any existing agreements or contracts. Both Skipton and Scarborough have always been committed to community involvement and this will continue in the enlarged Society.
How will the merger affect members?
Membership rights will be unaffected. Skipton members will see no changes to their membership rights at all. Scarborough members are now subject to the membership rules of the enlarged Skipton Building Society.
There will be no 'windfall' payment for members of either society and Skipton members will see no difference in their day-to-day relationship with the Society.
Yes. Both societies are financially strong and have sufficient money to support their savings balances. In addition, both Scarborough and Skipton participate in the Financial Services Compensation Scheme.
Savings customers, who held joint membership of the Skipton and Scarborough building societies at the date of the merger, will benefit from new rules that offer them additional cover from the Financial Services Compensation Scheme (FSCS).
Having reviewed the rules closely and approached the FSA with its proposals, Skipton Building Society can now confirm that those savers who had existing accounts with both societies, at the date of the merger, will be eligible for £100,000 protection (£50,000 for Skipton accounts and £50,000 for Scarborough accounts). Joint accounts which the account holders own equally will be eligible for £200,000 protection.
Skipton proactively sought to find a method by which its proposed merger with Scarborough Building Society could progress as planned and still offer the new, additional cover provided by the FSA's rule changes. To achieve this, all Scarborough Building Society savings accounts will be transferred to Skipton, but will retain the name “Scarborough” in the title. Passbooks and statements for these accounts will all contain the "Scarborough" name. Skipton will also maintain a separate record of all former Scarborough saving members.
Commenting at the time, David Cutter, chief executive, Skipton Building Society, said:
"We are delighted to have concluded our review of the new rules with such a positive outcome for members. This is another example of how building societies, like Skipton, are putting their members and their members' financial security first.
"The enlarged Society will be well capitalised, have good liquidity, strong funding lines and high asset quality. It will be even better placed to deal with any future uncertainties in the financial marketplace."
Read more information about the Financial Services Compensation Scheme 
The two organisations are well matched, sharing similar business models, subsidiary interests and geography, as well as their commitment to mutuality, their members, their people and their local communities.
The significant assets, expertise, experience and business relationships each will bring to the enlarged Society will provide a wealth of business opportunities for future growth and success.
The board of Skipton would only agree to this on the basis that it will benefit its current and future members.
The enlarged Society is a top five building society with approximately 860,000 members and over £16bn of assets. The enlarged Society will be well capitalised, have good liquidity, strong funding lines and high asset quality. It will be even better placed to deal with any future uncertainties in the financial marketplace.
How will the merger affect Scarborough employees?
No. Skipton will honour existing contractual arrangements for all Scarborough directors. There will be no compensation for loss of office over and above their contractual and statutory entitlement.
The enlarged Society will retain a significant presence in Scarborough.
The enlarged Society will retain a significant presence in Scarborough and the purpose-built head office, in Scarborough, will continue as a key operational and administrative centre.