Principle agreements have been made between Chelsea Building Society and the Catholic Building Society to merge.
Chelsea, the country’s fifth largest building society with assets in excess of £13 bn, would take on the Catholic’s engagements on a pre-determined date, subject to the FSA approving the deal.
The Catholic, which manages assets of £44m, is continuing to discuss further details of the transaction with Chelsea and any subsequent details will be released at a later date.
It is likely bonus payments will be made to members of the Catholic, who will have to approve the merger.
If bonus payments are made to the Catholic members, the first qualifying date will be 31 May 2008, meaning only those shareholding and borrowing members with a qualifying savings or mortgage account open on that date will be eligible.
Clare Whittaker, Catholic's chairman, comments: "We are delighted to have chosen Chelsea as our merger partner. The Catholic and Chelsea have much in common and share common values around mutuality and people".
Marcus Brookes appointed CIO
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