These were once a major national savings institution and for 200 years the main source of house-purchase mortgages. Nowadays building society mortgages represent a smaller proportion of the market. Since the Building Societies Act in 1986 the whole operation and structure of building societies has changed and many former societies are now mortgage banks. Abbey National, Halifax, Alliance & Leicester, Northern Rock, and the Woolwich were all former building societies.

The Nationwide, and most of the other remaining building societies, argue that they are able to offer a better service, and cheaper loans, than the banks which must distribute profits as dividends to their outside shareholders. What must be conceded is that following the relaxations, introduced over the last 15 years, there is now a far greater degree of competition between individual building societies and the mortgage banks than ever before. And many more types of mortgage are on the market.

Another consequence is that terms and conditions are constantly being revised with a vast variety of loans now available. While the variation in the net costs of a straightforward mortgage may be relatively small they could be more significant in the case of older property or if your application is unusual in any way. Specialist advice is absolutely essential whether you wish to borrow money or have savings to invest - do talk to us. If we cannot give you the necessary advice ourselves we will introduce you to someone reliable who can.