Skipton Building Society is going to merge with the Chesham. Skipton Building Society is one of the oldest building societies of U. K. while Chesham is based in Buckinghamshire and comparatively a less significant rival of the former.

The net interest income of Skipton was chopped down to nearly 40%. Previous year it was around £87.5 millon. But during the current year, the income was reported to be £53.3millon.

Moreover, Skipton Building Society has raised the standard variable rate on its mortgages from 3.5% to 4.95%. According to Skipton officials, the fall in income is due to impact of low interest rates.

In such a crucial situation, this merger is expected to be a booster for both the companies. Last year, Skipton had an acquisition with Scarborough building society and had added £2.6billon of assets.

The merger is also expected to add approximately £200million of assets to its balance sheet. On the other hand, a minor group like Chesham struggling to obtain funding may find the support from Skipton's resources.