Bank of England statement on Dunfermline’s savings, mortgage and loan businesses transferring to Nationwide.

Nationwide Building Society has announced today that Dunfermline Building Society’s savings business and branch network, most of its residential mortgage and the personal loan businesses will transfer to Nationwide.

This means that Dunfermline customer bank accounts have been moved across to Nationwide and you can continue to use your Dunfermline banking facilities, pay in and withdraw cash and access your accounts in the same way as before. Banking facilities will be open for business as usual, with branches, internet and call centres operating as normal.

Mortgage and loan customers’ terms and conditions remain the same and you should continue to make repayments as usual.

Dunfermline’s brand name will remain.

The Financial Services Authority (FSA) has also just introduced a new rule which means that any existing Dunfermline customer who also has an existing account with Nationwide is provided with separate cover, for both accounts, from the Financial Services Compensation Scheme at least until 30 September 2009.

The authorities have taken this action to protect savers' deposits by transferring them to Nationwide.

Dunfermline’s board announced it was no longer a going concern as its financial position deteriorated significantly. The FSA determined that Dunfermline was likely to fail to meet its regulatory requirements and there was no option available which would have enabled Dunfermline to satisfy the requirements.

The FSA consulted with the Government and the Bank of England before taking this decision.

Dunfermline savings accounts, as well as most of its mortgages and loans, have been moved across to Nationwide. You can continue to use your existing Dunfermline banking facilities and can continue to withdraw cash and access your accounts. All facilities will be open for business as usual, with branches, website and call centres operating as normal.

These steps have been taken to protect customers’ money – customer accounts remain open and can be accessed in the usual way:

This transfer means that Dunfermline’s other businesses which threatened the future of the firm, including commercial property lending, have been separated.

Nationwide now owns Dunfermline’s savings, mortgage and loan businesses as well as its network of branches and its head office. There will be no change for customers accessing their accounts. Terms and conditions will remain the same for mortgage holders and customers with loans.

News articles on this website are accurate, to the best of our knowledge, only at the date of publication. If the information they contain changes, follow-up articles may be published.