The Egg business comprises a £430 million mortgage book and a £2.5 billion savings book. As part of the transaction the Yorkshire is also able to continue using the Egg brand.
Following completion of the transaction, existing Egg borrowers with branded Egg or Pi mortgage accounts whose rate is set at or linked to the Egg or Pi standard variable rate (SVR) will immediately benefit by being automatically moved to the Yorkshire's SVR. The current Yorkshire SVR is 4.99% while the equivalent rate for Egg borrowers is 5.29% and for Pi borrowers 6%.
Egg savers and borrowers will also become members of the Yorkshire Building Society.
The acquisition is to be implemented by a banking business transfer under Part VII of the Financial Services and Markets Act 2000. This process is subject to approval by the High Court, which amongst other considerations will take into account the opinion of the Financial Services Authority.
Egg is writing to all its mortgage and savings customers with full details of the transaction and they are encouraged to read their documentation carefully.
