BORROWERS and investors with Skipton Building Society are each up to £1,000 richer today as the organisation handed back £50 million of profits to its members.

In a move which surprised the financial markets, Skipton is the first building society to hand over "loyalty" payments.

It will be seen as another move to spike the attempts of so-called carpetbaggers to convert the society into a company owned by shareholders with one-off windfall payments.

The society is keen not to portray it as a mutual version of a "windfall" but cannot hide its satisfaction that loyal members will receive funds without any loss of their rights as members.

Chief executive John Goodfellow dubbed it "superior gains without shareholder pains". Carpetbaggers, who joined the society more recently in the hope of picking up windfalls from conversions, will not benefit.

The society is not ruling out future loyalty payments.

The loyalty payment will come from profits from the sale of its share dealing subsidiary Dealwise earlier this year. It will go to customers who were members at September 30 1996 - the time SBS bought Dealwise.

The exact amount will depend upon how much individuals have saved with or borrowed from the society.

The society will be writing to members shortly to advise them of how much they will receive.