Building societies operate as mutual institutions unlike banks.

Building Societies(3)

araratyaregar.com Just like banks, UK building societies offer a wide range of financial services. These services include loans, personal banking and more. Under law however, building societies are required to dedicate 75% of their total operations towards residential mortgage loans and associated products.
Furthermore, building societies operate as mutual institutions unlike banks which are, in general, purely commercial enterprises. For instance, a client who holds a savings account or arranges for a mortgage with a building society is considered a member of that society, thus earning the right to vote during certain financial dealings, as well as enjoy full disclosure regarding the building societyfs operations.
A board of directors are responsible for each society, deciding how it is run and its financial strategy. There are no external shareholders, thereby bringing down operating expenses and allowing for more competitive rates on mortgages and interest than banks in general.

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