Building societies vs. banks
How do these lenders differ, and which might be the better fit for your secured loan?
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Who Should You Borrow From?
When you're looking for a secured loan, who you borrow from can shape the whole experience - from how you're treated to the rates you're offered. Banks and building societies both offer secured loans but their priorities, how they operate, and who they serve can be worlds apart. So which is better for you?
How banks work - and what they're best at
Banks are for-profit businesses, which means they exist to make money for shareholders. That doesn't mean they're bad - it just means their decisions are based on margins, growth, and balancing risk.
Some borrowers prefer banks because they:
- Can approve loans quickly if you fit their criteria
- Often have broader product ranges, including premium accounts and credit cards
- Offer sleek online tools and fast digital applications
- Have high-street-name recognition, which can feel more reassuring
On the other hand, if you've got a slightly patchy credit history or want a more personalised service, they might not be as flexible as you'd like.
What building societies bring to the table
Building societies are owned by their members - that's you, the customer - not shareholders. They're typically smaller, more regionally focused, and built around helping people, not profits.
Many people trust building societies because they:
- Often offer more personal, human-centred service
- May consider applications banks would instantly decline
- Tend to reinvest profits into better rates and customer perks
- Have community values, often supporting local projects and members
In general, building societies can surprise you with their flexibility, warmth, and actual listening - but they might move slower than banks.
Which is better for a secured loan?
It depends what you value more: speed and structure, or flexibility and fairness. Both types of lenders can offer competitive secured loans - but they approach risk, underwriting, and customer service differently.
Here's what to consider:
- Credit score: Banks tend to favour top-tier applicants. Building societies may be more open-minded.
- Size of loan: Banks can offer larger loans at speed. Societies might be more cautious but consistent.
- Customer service: Prefer human support? Societies may win. Enjoy slick apps? Banks have the edge.
- Ethical lending: Building societies often have stronger social goals built into how they operate.
- Local vs. national: Some societies are regional - great if you're nearby, but may be limiting if you're not.
Summing up
Banks and building societies both play important roles in the secured loans market - but they speak different languages. If you want fast and digital, banks might be the better way forward. If you're after a lender that sees you as more than numbers on a screen, a building society could surprise you. It's not just about the rate - it's about the experience, too.
Frequently Asked Questions: Secured Loans
Can building societies offer secured loans like banks?
Yes, many building societies do offer secured loans - though they may not promote them as visibly as banks do. Some specialise in niche lending, like helping homeowners with unusual circumstances or non-standard properties. It's always worth checking with your local or regional society - you might be surprised at how competitive their secured loan products actually are.
Can building societies offer secured loans like banks?
Yes, many building societies do offer secured loans - though they may not promote them as visibly as banks do. Some specialise in niche lending, like helping homeowners with unusual circumstances or non-standard properties. It's always worth checking with your local or regional society - you might be surprised at how competitive their secured loan products actually are.
Can building societies offer secured loans like banks?
Yes, many building societies do offer secured loans - though they may not promote them as visibly as banks do. Some specialise in niche lending, like helping homeowners with unusual circumstances or non-standard properties. It's always worth checking with your local or regional society - you might be surprised at how competitive their secured loan products actually are.
Do building societies check credit scores like banks do?
Yes, both banks and building societies check your credit score, but how they interpret it can differ. Banks tend to rely heavily on scoring systems - if your score's not within their preferred range, you might get declined automatically. Building societies often use manual underwriting, which means a real person reviews your application and they might be more likely to consider your personal context.
Do building societies check credit scores like banks do?
Yes, both banks and building societies check your credit score, but how they interpret it can differ. Banks tend to rely heavily on scoring systems - if your score's not within their preferred range, you might get declined automatically. Building societies often use manual underwriting, which means a real person reviews your application and they might be more likely to consider your personal context.
Do building societies check credit scores like banks do?
Yes, both banks and building societies check your credit score, but how they interpret it can differ. Banks tend to rely heavily on scoring systems - if your score's not within their preferred range, you might get declined automatically. Building societies often use manual underwriting, which means a real person reviews your application and they might be more likely to consider your personal context.
Do building societies check credit scores like banks do?
Yes, both banks and building societies check your credit score, but how they interpret it can differ. Banks tend to rely heavily on scoring systems - if your score's not within their preferred range, you might get declined automatically. Building societies often use manual underwriting, which means a real person reviews your application and they might be more likely to consider your personal context.
Are secured loans from building societies slower to arrange?
Sometimes, yes - but not always. Because building societies often handle applications manually and take a more personalised approach, the process can take a bit longer than with high-street banks. But that extra time can work in your favour if you need flexibility or have unusual circumstances. That said, some modern building societies have invested in digital tools to speed things up.
Are secured loans from building societies slower to arrange?
Sometimes, yes - but not always. Because building societies often handle applications manually and take a more personalised approach, the process can take a bit longer than with high-street banks. But that extra time can work in your favour if you need flexibility or have unusual circumstances. That said, some modern building societies have invested in digital tools to speed things up.
Are secured loans from building societies slower to arrange?
Sometimes, yes - but not always. Because building societies often handle applications manually and take a more personalised approach, the process can take a bit longer than with high-street banks. But that extra time can work in your favour if you need flexibility or have unusual circumstances. That said, some modern building societies have invested in digital tools to speed things up.
Are secured loans from building societies slower to arrange?
Sometimes, yes - but not always. Because building societies often handle applications manually and take a more personalised approach, the process can take a bit longer than with high-street banks. But that extra time can work in your favour if you need flexibility or have unusual circumstances. That said, some modern building societies have invested in digital tools to speed things up.
Is my money safer with a bank than a building society?
No - your money and your loan are equally protected with both. In the UK, both banks and building societies are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). So whether you're borrowing from a major bank or a smaller mutual society, you're covered by the same legal protections.
Is my money safer with a bank than a building society?
No - your money and your loan are equally protected with both. In the UK, both banks and building societies are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). So whether you're borrowing from a major bank or a smaller mutual society, you're covered by the same legal protections.
Is my money safer with a bank than a building society?
No - your money and your loan are equally protected with both. In the UK, both banks and building societies are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). So whether you're borrowing from a major bank or a smaller mutual society, you're covered by the same legal protections.
Is my money safer with a bank than a building society?
No - your money and your loan are equally protected with both. In the UK, both banks and building societies are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). So whether you're borrowing from a major bank or a smaller mutual society, you're covered by the same legal protections.
Can I switch from a bank to a building society loan?
Yes, you can switch providers if you're refinancing or settling a secured loan - but it's important to check the small print. Some loans come with early repayment charges or exit fees, which could impact whether switching saves you money. Just make sure you compare carefully and get advice if you're unsure about the process.
Can I switch from a bank to a building society loan?
Yes, you can switch providers if you're refinancing or settling a secured loan - but it's important to check the small print. Some loans come with early repayment charges or exit fees, which could impact whether switching saves you money. Just make sure you compare carefully and get advice if you're unsure about the process.
Can I switch from a bank to a building society loan?
Yes, you can switch providers if you're refinancing or settling a secured loan - but it's important to check the small print. Some loans come with early repayment charges or exit fees, which could impact whether switching saves you money. Just make sure you compare carefully and get advice if you're unsure about the process.
Can I switch from a bank to a building society loan?
Yes, you can switch providers if you're refinancing or settling a secured loan - but it's important to check the small print. Some loans come with early repayment charges or exit fees, which could impact whether switching saves you money. Just make sure you compare carefully and get advice if you're unsure about the process.
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