Yorkshire Building Society is set to acquire Egg Banking’s mortgage and savings business, which comprises a £2.5bn savings book and a £430m mortgage book.
The transaction is subject to approval by the High Court, which will also take the FSA’s opinion into account.
The acquisition is due to complete in the fourth quarter and Yorkshire will acquire the Egg brand as part of the transaction.
The society says the mortgage book comprises of “high quality, low loan-to-value, prime residential loans”.
Yorkshire, which has around £30bn of assets, is also set to complete its proposed merger with Norwich & Peterborough Building Society on November 1, subject to a vote of N&P members and confirmation by the FSA.
Yorkshire chief executive Iain Cornish says: “We are looking forward to welcoming Egg’s mortgage and savings customers to the Yorkshire. Continuing to provide them with the outstanding service, administration and value that they have been used to, and which is consistent with our own approach, will be a priority for us and we will work closely with Egg to ensure that customers are kept fully informed throughout this transfer process.”
Emba group sales and marketing director Mike Fitzgerald says: “Yorkshire is getting bigger and brokers are taking more notice of it these days.”