Building Societies - rendering financial assistance

Building societies in the UK refer to financial institutions mutually owned by members. These building societies are profoundly contending with banks by offering various products and services in the form of mortgage lending, deposit accounts to personal banking services. The history of the building societies in the UK can be well tracked to the 19th century where business proprietors offered mortgage facilities for people intending to buy homes without having to deal with the banks. Being members of the building society association these building societies get certain benefits but also need to function as per the acts limitations.

It was in the late 1700s that the first building society in the UK came to exist in the city of Birmingham in the Britain’s Midlands. After originating in the UK the building societies progression also found space in the Australian, Ireland, Jamaica and New Zealand countries. The building society institutions also found place with varied names in the USA, Germany, Austria and Finland.

Statistics prove that as of 2008, there were about fifty-nine building societies in the UK whose accumulated funds amount to over £360 billion. All these building societies which exist in the UK are members of the Building Societies Association which further offer them a strong share in the savings as well as mortgage markets. It is through this association which enables theses building societies to receive awards from independent bodies for the service and interest rates they render. Building societies tender mortgage plans for new home construction or buying a new house. Though building societies offer financial assistance for new house owners but they are completely different from banks, in the sense that they are owned by members prevalent in the UK where as banks offers services to customers all over the world.

It was only after Parliament passing the Building Society Act in 1874 followed with changing British laws in the 1980s which let the building societies offer banking services as offered by banks. It has been possible cause of these amendments and detailed provisions that building societies have been able to offer a variety of services to their customers. Hinckley & Rugby Building Society, Leek United Building Society, Portman are just a few of the names which appear on the list of building societies in the UK.

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About the author

Billy Johan writes about Building Societies and Building Societies in The UK to learn more about Building Societies just visit at http://www.buildingsocieties.co.uk/

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