What is Building Society?

Building Societies are a mutual non-profit organizations which help their members loaning money for house purchases. The term mutual means that it’s owned and managed by their own members and this means that the profits are divided amongst them. In 1986 the Building Society Act increased these organizations financial range by allowing them to give out unsecured personal loans or pensions, insurance policies.

So now days these organizations can rival banks. In recent years the biggest Building Societies have turned their self in to profit making banks and these profits are distributed amongst their members. These organizations are regulated by (FSA) Financial Service Authority.