Facts, Figures & Opinions BSA Yearbook 2017/18 …mitigating mortgage security risk… Specialist property valuati on advice, carefully sourced, managed, monitored, checked and delivered… Valuati on Risk Management www.AppraisersUK.com [email protected] …mitigating The Building Societies Association (BSA) is the voice Contents of building societies in the UK. We also represent four mortgage credit unions. Our objective is to push for the best outcomes for our Introduction members across the plethora of new and changing • Welcome from Robin Fieth, Chief Executive of 3 security regulation and legislation in the UK and the EU. To do this Building Societies Association we work with the UK Government, the EU Commission, Council and Parliament and regulators, especially the risk… Prudential Regulation Authority and Financial Conduct Editorial Authority. In Europe we are a member of the European Association of Co-operative Banks. • Supporting housing that is affordable, 6 community-led and ecological We also speak out on relevant issues and provide technical information to our members. Our economists • Skipton, Building a better society 8 and specialist policy teams have expertise covering mortgages and housing, savings, financial policy, and • Mortgages for people, not numbers 11 legal and compliance matters. • Coventry Building Society – a new perspective 13 Email: [email protected] • The development of The Nottingham’s Web: www.bsa.org.uk 15 “all under one roof” advice and service Follow us on Twitter: @BSABuildingSocs member proposition ISBN 978-1-869839-40-6 • Building Society, Nationwide 19 • Women in Finance: Key to mutuality? BSA yearbook (Print) ISSN 2044-7116 21 BSA yearbook (Online) ISSN 2057-0333 • Spreading the benefits of Corporate 23 Social Responsibility The views expressed in this magazine are not necessarily those of The Building Societies Association (BSA). This • Council & BSA Team 27 publication (or any part thereof) may not be reproduced, transmitted or stored in print or electronic format • Regional Associations 28 (including, but not limited to, any online service, any database or any part of the internet), or in any other format in any media whatsoever, without the prior BSA Member’s Directory written permission of the publisher. • Alphabetical listing of all BSA members including 30 Although every effort is made to ensure the accuracy contact details and summary financial position of information contained in the magazine, neither the BSA nor the publisher can accept responsibility for any • BSA Associates 79 omissions or inaccuracies it contains. • BSA Overseas Associates 93 Building Societies Association Yearbook is published on behalf of the BSA by Financial Statistics • Key statistics 96 • Building society operational information 98 Lansdowne Publishing Partnership Ltd, 11 School House, 2nd Avenue, Trafford Park Village, • Building society / mutuals mortgage lending, UK 99 Manchester M17 1DZ T: 0161 872 6667 • Mortgage balances outstanding 100 W: www.lansdownepublishing.com • Mortgage gross advances E: [email protected] 101 • Number of loans approved 102 Senior Sales Manager Shahzadi Khan • Building society shares and deposits 103 Specialist property valuati on T: 0161 872 6667 advice, carefully sourced, E: [email protected] • ISA inflows 104 Printed by Buxton Press • House prices, retail prices & earnings 105 managed, monitored, • House prices & sales 106 • Interest rates 107 Valuati on Risk Management checked and delivered… • Taxation 114 • Mergers & Name Changes 115 www.AppraisersUK.com [email protected] Accelerate your career in Mortgage Advice Our industry-leading mortgage advice qualications will guide you throughout every stage of your career. 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This also led to a successful promotion at work. ” Adam Cowburn Trainee Mortgage Adviser LIBF A4 BSA Yearbook 2017.indd 1 22/09/2017 14:54 Robin Fieth Chief Executive Building Societies Association “Building societies saw the proportion of lending to borrowers with terms taking them Introduction beyond age 65 rise Welcome to the BSA Yearbook for 2017/18, containing to 38% during 2016. useful reference data about BSA members: all of the UK’s Already, all UK building 44 building societies and four of the country’s largest societies have reviewed credit unions. It is here where you will also find information their lending policies about our Associate members, who come from a range of and 34 will lend up to different sectors from the big four accountants, fintech, age 80 or beyond.” legal, surveyors and many more. You will also find articles from our members. the mutual sector is strong and we need to build This year the Coventry details its innovative on that and hold true to our values”. perspective on savings. The Ecology Building Society shares its community-led approach The BSA commissioned some research – released to housing. Glasgow Credit Union talks in November 2017 – on culture in the mutual about spreading the benefits of Corporate sector. The paper investigates the extent to which Social Responsibility and Nationwide explores customer-ownership is embedded in building its social purpose. societies’ cultures, and therefore whether it has an effect on employee behaviour, surveying over Leeds Building Society debates gender and its 2,300 employees across the sector. Striking figures approach to Women in Finance. Ipswich Building from the research showed that, according to their Society shares how its mortgage lending policy is employees, customers of building societies get helping consumers who find themselves ‘Mortgage 37% of the benefit created by a building society Misfits’ and the Nottingham uncovers its approach (versus bank employees, who said that their to delivering ‘all under one roof’ advice. customers get just 13% of the benefit created by plcs). Similarly, employees at building societies Just from this range of editorial there is evidently said that local communities get 12% of the benefit a lot going on in our sector. These articles only created by building societies, whereas plc begin to scratch the surface of wealth of policy employees estimated that local communities got innovation that is happening. What is quite special just 3% of the benefit created by plcs. about the mutual sector – and perhaps unique in the financial services world – is the willingness to The BSA and building societies are focusing share non-competitive information and knowledge in particular on three development areas, with one another. This approach to collaboration all consumer related: reminds me of a quote from George Bernard Shaw, Older borrowers – the UK has an ageing Irish playwright and critic. He said: population. Research commissioned by the BSA from the UK International Longevity Centre “If you have an apple and I have an apple and we (UK-ILC) and published in May 2017 showed that exchange these apples, then you and I will still each the need for people to borrow for longer and later have one apple. But if you have an idea and I have an in life is growing. Already there are clear signs that idea and we exchange these ideas, then each of us the traditional homebuyer journey – buy in your will have two ideas.” 20s; trade up in your 30s and 40s; pay off debt in your 50s and 60s and retire mortgage free is This simple yet powerful approach is at work in changing. Building societies saw the proportion of the building society sector. It is evident in the lending to borrowers with terms taking them recent establishment of a Collaboration working beyond age 65 rise to 38% during 2016. Already, group, which enables representatives from the all UK building societies have reviewed their UK’s building societies to think about certain areas, lending policies and 34 will lend up to age 80 or like employee education or exploring Fintech beyond. The risks of lending to older borrowers solutions where they can effectively and legally are different but must be grappled with, as this work together. This is a typical example of the societal change is unstoppable. approach of our very practical sector. I was particularly struck by a recent article from Helping to solve the housing crisis – This work Principality Building Society’s new CEO, goes well beyond our traditional role of mortgage Steve Hughes, who explains how in his first lending, which already sees societies lend to 100 days, he “locked the door from the outside” consumers with more complex needs, from zero and “learned to walk the talk” by visiting each and hours contracts and self-employment through to every Principality branch hearing from staff and self-builders and shared ownership. The bottom members. He learned a lot about where to focus line is that we will never solve the housing crisis his attention, and found in particular that “trust in until demand and supply are in better balance. www.bsa.org.uk 3 “If you have an apple and I have an apple and we exchange these apples, then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.” This simple yet powerful approach is at work in the building society sector.