The building society versus the high street bank
19/06/15 | Posted by: admin
According to the Building Societies Association, building societies are continuing to perform well in a highly competitive mortgage market. But what is it about them that attracts customers and sets them apart from the high street banks? Richard Carson, Business Development and Marketing Manager at Earl Shilton Building Society explains.
During 2014, building societies punched above their weight, providing 26 per cent of all mortgage lending in the UK with gross lending of £52.6 billion during the year, out of a total of £204.4 billion lending by all mortgage lenders. This performance was well above the sector’s more natural market share of 19 per cent. Not only this, but societies also approved mortgage loans to over 373,000 homebuyers.
There are a number or reasons why customers are choosing to take out their mortgages with building societies rather than banks, including the ability for some to offer an individual approach to all applications. In addition, some can offer a truly personal service and a quick turn-around when setting up mortgage interviews, and then providing face-to-face advice with specialist mortgage advisers on-hand to take them through the whole application process.
At Earl Shilton Building Society our expert mortgage team take the time to discuss the circumstances of the mortgage applicant and will look to help in their best interests whilst adhering to the regulations in place to protect customers and ensuring that mortgage repayments are affordable.
We also go one step further and the allocated mortgage adviser will go on to work with the customer, not just at application stage, but throughout the life of their mortgage with the Society. This means that they will consistently have contact with someone who has an in-depth knowledge on their circumstances
Furthermore, due to their size and the corresponding shorter lines of communication between management, smaller building societies are able to respond faster to changes in the market place and implement those changes quickly to the benefit of the customer base.
It’s also worth noting that building societies have been found to consistently pay better rates to savers than their competitors. According to research by Savings Champion, the independent research website, 78 per cent of accounts at building societies paid interest above the Bank Rate of 0.5 per cent, compared with 56 per cent of similar accounts on offer from other providers. While the average interest rate paid by building societies was 1.3 per cent, compared with 0.95 per cent from other providers. In addition building societies were found to be more generous than the banks in rewarding their existing savers.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Research for this article came from: