Building Societies

Building Societies are a particular kind of financial organisation that are owned by their members; that is, they are mutual institutions rather than commercial enterprises. Anyone who has a mortgage or a savings account with a building society is a member of that society and has certain rights to vote and receive information about the society and its financial dealings.

Like banks, building societies provide a wide range of financial services, including (but not limited to) personal banking, savings accounts, and loans. However, government legislation states that 75% of a building society's total business must be devoted to residential mortgage loans and related products, such as home equity loans. As building societies do not have external shareholders, they usually have lower operating costs and can therefore offer lower rates on loans and mortgages and better interest rates on current and savings accounts than banks.