bsoc:building-societies

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bsoc:building-societies [2025/11/07 03:14] – katjabsoc:building-societies [2025/11/12 17:24] (current) – katja
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---- +# Building societies 
-title: "Building societies" + 
-date: 2017-06-18 +![Leeds Building Society](https://lowimpactorg.onyx-sites.io//wp-content/uploads/Leeds-building-society.jpg)
-categories:  +
-  - "building-societies" +
-  - "shelter" +
-tags:  +
-  - "co-operatives" +
-  - "cohousing" +
-  - "community-land-trusts" +
-  - "credit-unions" +
-  - "housing-co-operatives" +
-  - "money" +
-  - "rotating-savings-credit-associations-roscas" +
-coverImage: "Leeds-building-society.jpg" +
---- +
-## Building societies+
  
 > "A mutual is owned by, and run for the benefit of, its members - it has no external shareholders to pay in the form of dividends, and as such does not usually seek to maximize and make large profits or capital gains." - Wikipedia > "A mutual is owned by, and run for the benefit of, its members - it has no external shareholders to pay in the form of dividends, and as such does not usually seek to maximize and make large profits or capital gains." - Wikipedia
  
-### What are building societies?+ 
 +## What are building societies?
  
 Building societies are mutual institutions offering savings accounts and mortgages, and occasionally current accounts. This is all they provide. They are simple beasts compared to banks, and their mutual nature means that they are owned by their members, and are not listed on stock exchanges and owned by shareholders. Building societies are mutual institutions offering savings accounts and mortgages, and occasionally current accounts. This is all they provide. They are simple beasts compared to banks, and their mutual nature means that they are owned by their members, and are not listed on stock exchanges and owned by shareholders.
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 </figure> </figure>
  
-#### History+### History
  
 The [first building society](https://www.thefreelibrary.com/Brum's+building+society+origins-a0188990857) was formed in 1775, by Richard Ketley, proprietor of a pub called the Golden Cross, in Snow Hill, Birmingham. At the time, publicans encouraged meetings of working men in their pubs in order to sell more beer! Lots of trades unions and friendly societies were formed in pubs. This society was quickly followed by others in Birmingham, then Dudley, Rowley Regis and other places in the Midlands, North and Scotland. Members of early societies like this paid money into a pot, and when there was enough, one member’s name was drawn by lot and the money was used to build them a house. This house was used as security for attracting more loans until everyone in the group was housed, after which the society had served its purpose and was disbanded. These early societies were consequently called ‘terminating’ societies. The [first building society](https://www.thefreelibrary.com/Brum's+building+society+origins-a0188990857) was formed in 1775, by Richard Ketley, proprietor of a pub called the Golden Cross, in Snow Hill, Birmingham. At the time, publicans encouraged meetings of working men in their pubs in order to sell more beer! Lots of trades unions and friendly societies were formed in pubs. This society was quickly followed by others in Birmingham, then Dudley, Rowley Regis and other places in the Midlands, North and Scotland. Members of early societies like this paid money into a pot, and when there was enough, one member’s name was drawn by lot and the money was used to build them a house. This house was used as security for attracting more loans until everyone in the group was housed, after which the society had served its purpose and was disbanded. These early societies were consequently called ‘terminating’ societies.
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 _The Newcastle Building Society opened a branch inside Yarm library, North Yorkshire, to prevent its closure._ _The Newcastle Building Society opened a branch inside Yarm library, North Yorkshire, to prevent its closure._
  
-#### Demutualisation+### Demutualisation
  
 Many building societies were ‘demutualised’, starting in the 1980s, after deregulation that allowed mutual societies to become banks with shareholders, or to be merged with existing banks. Incentives were offered to members in the form of cash payments or shares. The first mutual society to be demutualised was Abbey National, followed by famous names such as Alliance and Leicester, Northern Rock and Bradford and Bingley. They have all since failed. Many building societies were ‘demutualised’, starting in the 1980s, after deregulation that allowed mutual societies to become banks with shareholders, or to be merged with existing banks. Incentives were offered to members in the form of cash payments or shares. The first mutual society to be demutualised was Abbey National, followed by famous names such as Alliance and Leicester, Northern Rock and Bradford and Bingley. They have all since failed.
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 </figure> </figure>
  
-### What are the benefits of building societies?+## What are the benefits of building societies?
  
 Profits are only distributed to staff and to members of the society, they are not creamed off for shareholders. For this reason, they are often able to offer competitive rates for savings accounts and mortgages. Profits are only distributed to staff and to members of the society, they are not creamed off for shareholders. For this reason, they are often able to offer competitive rates for savings accounts and mortgages.
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 _George Bailey again, this time explaining the nature of mutualism and avoiding a run on his mutual savings and loans bank._ _George Bailey again, this time explaining the nature of mutualism and avoiding a run on his mutual savings and loans bank._
  
-### What can I do?+## What can I do?
  
 Switch your savings, mortgage and (with some societies) current account to a building society. Lots of people organise their mortgages through a broker, and if that’s the case, you can stipulate that you’d like to use a building society. If they don’t understand your ethical reasons for doing so, you’ll then have the opportunity to educate them. Switch your savings, mortgage and (with some societies) current account to a building society. Lots of people organise their mortgages through a broker, and if that’s the case, you can stipulate that you’d like to use a building society. If they don’t understand your ethical reasons for doing so, you’ll then have the opportunity to educate them.
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 Once you’re a member of a building society, you become a part-owner, and so you have the right to become involved in the running of the society (although of course you don’t have to if you don’t want to). You’ll have the right to nominate and vote for directors, or to stand for election yourself (as long as you get enough support from other members), and to attend the AGM. Once you’re a member of a building society, you become a part-owner, and so you have the right to become involved in the running of the society (although of course you don’t have to if you don’t want to). You’ll have the right to nominate and vote for directors, or to stand for election yourself (as long as you get enough support from other members), and to attend the AGM.
  
-### Specialist(s)+## Specialist(s)
  
 **Thanks to Hilary McVitty of the [Building Societies Association](https://www.bsa.org.uk) for information.** **Thanks to Hilary McVitty of the [Building Societies Association](https://www.bsa.org.uk) for information.**
  
  • bsoc/building-societies.1762485272.txt.gz
  • Last modified: 2025/11/07 03:14
  • by katja