Buying a house is every ones dream, though many do not have surplus money which can be used for fulfilling this dream. Thus in order to offer people a chance for owning a house there are building societies which provide financial assistance to new buyers, however their operations are specifically for people residing in the United Kingdom. These building societies are financial institutions which are mutually owned by members. It was in the 19th century that the building societies came to exist with various business proprietors offering mortgage facilities especially for people wanting to buy homes.
These societies have gained popularity with the masses as they render various products and services which are also offered by banks. Some of these may include mortgage lending, deposit accounts to various personal banking requirements and services. Many people would not want to deal with a bank which offers a competitive edge to these building societies.
There are 48 UK building societies which are true representative of mutual lenders and deposit takers. The main functionality of these societies is to appropriately represent the interests of its member to various external bodies including the government departments and regulators.
Like the way banks have to follow certain norms and regulations so is the case with building societies, as these are regulated by the Financial Services Authority, and are also subjected to legislature requirements detailed under the Building Societies Act 1986. The act has under gone various changes, revisions and amendments since its inception. The act well mentions the various provisions in detail which help in identifying the constitution of building societies, it also highlights the limits on raising funds other than from individuals who are members, it also mentions in details the various restrictions on powers so assigned to these building societies.
In order for these societies to function in a hassle free manner they need to be part of the BuildingSocieties Association, which offers them a strong share in the savings and the mortgage market. All you need to do is a search for a building society in your locality and then you are all set to own a house.
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