Recruitment of new staff is continuing at Yorkshire Building Society on the back of soaring demand for mortgages.

The Bradford-based organisation yesterday became a stronger second force in the UK building society industry after its merger with the Chelsea was completed.

The new group will be headquartered in Bradford and be known as Yorkshire Building Society, with the Chelsea Building Society name being retained and operated as a separate and distinct brand.

It has assets of £36 billion, 178 branches and 2.8 million members.

The merger was approved by an overwhelming majority of members of each society in January.

The Yorkshire says the move will provide consumers with a secure and credible alternative to the high street banks.

Iain Cornish, chief executive of the enlarged society, said: “This is an exciting day in our societies’ histories, heralding the beginning of a new chapter. Our focus now is on successfully integrating the two organisations, which we anticipate will take between 12 and 18 months.”

Although increasing demand for loans means new jobs in Bradford, there will be some staff cuts as the two societies’ operations are combined. It has already been announced that one of the former Chelsea operations centres, in Cheltenham, will be closed.

Mr Cornish said the combined performance of the two societies in January and February had shown a pre-tax profit with lending rising by more than 200 per cent compared to the same period last year.

He said: “This performance is ahead of our expectations and as the benefits of the merger are realised our ability to deliver value to members will continue to increase.”

Yorkshire Building Society has seen a 400 per cent increase in mortgage applications during the first three months this year compared to the last three months of 2009.

Mr Cornish said: “We have started 2010 at a fast pace and have been quick off the blocks to launch new products and to cut rates. So far this year we have received more than 350 best buy mentions in the national press for our mortgage products and we have seen a large increase in applications as a result.”

  • Meanwhile, Chesham Building Society members have approved the proposed merger of the Buckinghamshire mutual with the Skipton Building Society by a majority of more than 80 per cent. Subject to final confirmation by the Financial Services Authority, the merger is expected to become effective on June 1.