Pros and Cons of building societies over banks and other mortgage lenders

"The Easy Way to Get Your Best UK Mortgage"

About Us

Your Privacy

Tip Our Charity

This website is Approved by Cradon Investments Ltd Authorised and Regulated by
the Financial Services Authority FSA No: 300505

TrustGuard

Mortgage Guide
Click for Full Contents

How to Choose your Mortgage
Click for Full Contents

The pros and cons of mutual building societies - over banks and other mortgage lenders

Building Society Pros:

· Owned by the members – members have a direct say in decision making.

· More democratic. Every member has a vote

· Works for the interests of the members, not of the shareholders and financiers.

· Often offers better saving and borrowing rates.

· An investment for the long term – offering security and dependability.

Building Society Cons:

· While democratic in theory member control is often a myth with the real power resting with managerial cliques.

· Members’ share is locked into the society. One of the arguments for demutualisation is that the members’ share is freed up in the shape of a windfall.

· Members bear the risks, as well as the rewards, of the market and are not protected by the shareholders or limited company status.

· There is no access to external equity capital which societies argue is essential to competing in the modern financial market.

History

Building Society demutualisation

Pros and cons of Building Societies

Full list of local UK Building Societies

To read more on this subject please see the list below or your mortgage guide or your home buying guide

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below


Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country
Bad Credit History?		Yes No

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel