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Principality is Wales' largest building society, known for strong first-time buyer products and award-winning customer service, though its lending is limited to England and Wales.
Principality Building Society is a well-regarded mainstream lender, particularly for first-time buyers and borrowers who value personal service over the lowest possible rate. It scores highly for customer satisfaction and offers strong first-time buyer support, including mortgages up to 95% loan-to-value (LTV) and Joint Borrower Sole Proprietor (JBSP) mortgages that let family members boost affordability without joining the property title.
Whether Principality is right for you depends on your priorities. If you value service and local presence, its mutual, member-owned model may suit you well. If getting the lowest possible rate is your only concern, it's worth comparing Principality against other lenders before deciding.
Thinking about Principality?
Our advisors compare Principality alongside a wide range of other lenders to help you find an option that fits your income, deposit, and property.
Principality Building Society was established in Cardiff in 1860, making it one of the UK's oldest financial institutions. As a mutual organisation, it's owned by its members rather than shareholders, which means profits are reinvested into the society rather than paid out as dividends.
The society has grown considerably over its history and is now the largest building society in Wales, ranking 6th nationally among UK building societies. It helps thousands of people buy their first home each year.
Principality maintains a strong physical presence with over 50 branches and agencies across Wales and the border counties, making it the financial services provider with the most branches in Wales. The society has committed to maintaining this high street presence, which is notable at a time when many banks are closing branches.
The building society also holds the naming rights to the Principality Stadium in Cardiff as part of a long-term partnership with the Welsh Rugby Union.
Principality holds a modest share of the UK building society market and ranks among the mid-sized building societies by total assets. While smaller than giants like Nationwide, Principality has carved out a strong regional presence, particularly in Wales.
The society employs around 1,200 colleagues and operates through both direct channels and intermediary partnerships. Its intermediary platform, Principality for Intermediaries, gives mortgage brokers access to its full product range and specialist support.
Principality Building Society is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority under registration number 155998. This dual regulation provides strong consumer protection.
Deposits with Principality are protected by the Financial Services Compensation Scheme up to £85,000 per depositor. This means your savings are protected even if the society were to run into difficulty, though as a well-capitalised mutual with over 165 years of history, this is considered unlikely.
Product range
Principality offers a comprehensive range of Principality Building Society mortgages designed to suit different borrower needs. Here's what's available in more detail.
Principality's core residential mortgage range includes fixed-rate and tracker mortgages for:
Fixed-rate terms are available over 2, 3, and 5 years, with some products including cashback incentives or reduced fees. Once any initial fixed or discounted period ends, borrowers move onto the society's standard variable rate. Speak to an advisor for current rate information, as rates change frequently.
Principality is particularly strong for first-time buyers. They offer:
95% LTV mortgages: first-time buyers can borrow up to 95% of a property's value, meaning you only need a 5% deposit. This applies to both existing properties and new-build houses.
New build support: for new-build flats, Principality lends up to 90% LTV. It also accepts builder incentives, such as payment of stamp duty or legal fees, provided these are disclosed and taken into account by the surveyor.
Help to Buy Wales: Principality offers specific products for the Help to Buy Wales scheme, with lending up to 75% LTV on selected products.
One of Principality's standout products is its Joint Borrower Sole Proprietor (JBSP) mortgage, also known as an Income Boost mortgage. This allows up to four people's income to be considered for affordability purposes, but only one person (or couple) owns the property and lives there.
This is particularly useful for:
JBSP mortgages are available at 75%, 85%, and 90% LTV.
Principality's buy-to-let offering includes:
Principality doesn't currently offer regulated buy-to-let mortgages, and doesn't lend on houses of multiple occupation (HMOs) or student lets. It also won't provide buy-to-let lending for debt consolidation purposes.
For those looking to purchase a holiday let property, Principality offers:
Principality provides shared ownership mortgages for those buying a portion of a property through a housing association scheme. It also supports Right to Buy applications for council tenants, lending up to 95% of the property value.
Joint Borrower Sole Proprietor mortgages are worth asking about if your income alone wouldn't stretch far enough. A parent or family member's income can be added to the affordability assessment without them ever owning a share of the property, which is different to a standard joint mortgage.
Principality regularly reviews its mortgage rates, though according to Which? research they don't consistently appear in best-buy tables.
According to Which? analysis, Principality has appeared in best-buy tables less frequently than the market average. This suggests that while its rates are reasonable, cheaper options are often available from other lenders.
That said, Principality has shown competitive positioning in specific areas, including:
Because rates and product availability change frequently, an advisor can give you current, personalised figures rather than relying on published examples that may be out of date.
When comparing Principality's rates to competitors, it's worth considering more than the headline figure:
Product fees: Principality offers both fee-free products and those with arrangement fees, typically in the region of £500 to £1,124. A lower rate with a fee may cost more overall than a slightly higher rate without one.
Cashback offers: some Principality products include cashback, which can offset some costs.
Free valuations and legal fees: for remortgages, Principality often includes a free standard valuation and contributes towards legal fees, which adds value even if the headline rate isn't the absolute lowest.
Don't compare mortgages on the headline rate alone. A fee-free product at a slightly higher rate can work out cheaper overall than a lower rate with a large arrangement fee, especially on smaller loans. Ask your advisor to compare the total cost over your expected term.
Understanding Principality's eligibility criteria can help you assess whether you're likely to be accepted before applying.
Age: applicants must be aged 18 or over. Standard residential mortgages must be repaid before the eldest applicant's 76th birthday, extending to 85 for certain later-life lending products.
Property location: Principality only lends on properties in England and Wales. This is a significant limitation if you're looking to buy in Scotland or Northern Ireland.
Principality assesses affordability based on your income and outgoings. Typical income multiples are around 4 to 4.5 times income, though this varies based on circumstances.
Employed applicants: standard payslips and employment verification are required.
Self-employed applicants: Principality has flexible criteria for self-employed borrowers. It typically requires two years of accounts, but may accept one year for established businesses with turnover exceeding £100,000. Contract workers with 6 or more months remaining on their contract may qualify based on contract value.
Variable income: Principality can consider bonus, overtime, and commission income where there's a track record.
Principality isn't a specialist adverse credit lender, so it's best suited to borrowers with clean or near-clean credit histories. It considers applications holistically, but its criteria are generally mainstream rather than flexible. If you have significant credit issues, specialist lenders may be a better fit, and it's worth speaking to an advisor about your options.
If you're worried about debt or your ability to keep up with mortgage payments, you can get free, independent guidance from MoneyHelper at moneyhelper.org.uk or by calling 0800 138 7777.
Property types accepted:
Property restrictions:
Your deposit should primarily come from your own savings. However, Principality does accept:
For debt consolidation remortgages, the maximum LTV is 75%, with capital repayment only required.
Self-employed or complex income?
Our advisors can check your eligibility against Principality and a wide range of other lenders, without affecting your credit score.
How it works
Initial enquiry
Apply through a mortgage broker, directly at a Principality branch, or via their website if you're an existing customer. Principality runs a soft credit check at this stage, which won't affect your credit score, and gives you an initial indication of whether you're likely to be accepted.
Full application
Once you've found a property, or are remortgaging, you'll need to provide identity documents, proof of address, income evidence (payslips and P60 for employed applicants, two years' accounts and SA302s for self-employed applicants), and recent bank statements.
Valuation
Principality arranges a valuation of the property. For lower-risk cases, such as standard houses at up to 75% LTV under £500,000, a desk-based valuation may be used. All other applications require a physical valuation, and some products include a free standard valuation.
Underwriting
Principality's underwriting team assesses your debt-to-income ratio, the property valuation, recent credit activity, and overall affordability. Their intermediary support team offers direct access to senior underwriters to help resolve issues quickly.
Mortgage offer
If approved, you'll receive a formal mortgage offer. Offers are typically valid for 180 days (6 months) for standard purchases and remortgages, or 240 days (8 months) for new build purchases, with the possibility of an extension.
Understanding the full cost of a Principality mortgage helps you compare it properly against alternatives.
Principality offers both fee-free products and those with arrangement fees:
Product fees are non-refundable and non-transferable. They can be added to the loan, though at higher LTV tiers, adding fees must not push the loan above the maximum LTV cap.
A standard valuation is often included free, especially for remortgages, though a physical valuation is required for non-standard properties, higher LTV lending, or higher property values.
For remortgages, Principality often contributes towards legal fees using its panel solicitors. For purchases, you'll need to arrange and pay for your own conveyancing.
If you repay your mortgage during a fixed or discounted rate period, early repayment charges typically apply. These vary by product and are usually calculated as a percentage of the outstanding balance, reducing the closer you get to the end of the initial period.
Good to know: if you're within 90 days of your product's special rate ending, Principality will waive early repayment charges if you're simultaneously completing a new mortgage with them.
Principality allows overpayments of up to 10% of the outstanding balance per calendar year without incurring early repayment charges. For example, if your outstanding mortgage is £180,000, you could overpay up to £18,000 annually without penalty. Overpayments can be made as regular increases to your monthly payment or as occasional lump sums.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Principality has built a strong reputation for customer service, which is reflected in independent surveys and awards.
Principality can be reached by phone on 0330 333 4000 for general enquiries, through over 50 branches across Wales and the borders, via an online account management portal, or by email for complaints at complaints@principality.co.uk.
Principality has performed well in customer satisfaction surveys. In the Which? 2025 survey, it scored 80% for customer satisfaction, joint top with Nationwide and Skipton among building societies, with customers praising the clarity of mortgage statements and overall service. It has also won the What Mortgage Award for best building society customer service six years running.
Trustpilot reviews are more mixed, with praise for branch staff and in-person service, but some complaints about online systems and processing times.
Once you have a Principality mortgage, you can manage it through online account access, branch visits for in-person support, or a product transfer when your fixed rate ends, often via a streamlined process. Principality actively contacts customers approaching the end of their fixed-rate period to discuss their options, which helps avoid the shock of moving onto a higher rate unexpectedly.
Getting a second opinion helps you see the full picture
Strong first-time buyer support: with 95% LTV mortgages available, including for new builds, Principality helps buyers with smaller deposits get onto the property ladder. Its JBSP mortgages are particularly useful for those who need family income support.
Award-winning customer service: consistently high ratings for customer service mean you're likely to have a good experience, especially if you value in-person or phone support over purely digital interactions.
Branch network: having over 50 branches across Wales and the borders means local, face-to-face support is available. For borrowers who prefer dealing with people rather than apps, this is a significant advantage.
Mutual status: as a building society owned by its members, Principality reinvests profits into the business rather than paying shareholders. This mutual ethos often translates into a more member-focused approach.
Flexible self-employment criteria: Principality's willingness to consider one year's accounts for established businesses, along with its flexible approach to variable income, makes it suitable for many self-employed borrowers.
Geographic restrictions: only lending on properties in England and Wales rules out Principality for anyone buying in Scotland or Northern Ireland.
Rates not always the cheapest: while competitive, Principality doesn't consistently feature in best-buy tables. If you're purely rate-focused, you may find better deals elsewhere.
Limited adverse credit options: Principality isn't a specialist lender for those with credit problems. If you have significant credit issues, specialist lenders may be more suitable.
Online systems: some customers have found the website and online processes dated or frustrating. If you prefer a highly digital experience, this might not be the lender for you.
Buy-to-let restrictions: not offering HMOs, student lets, or debt consolidation for buy-to-let limits options for property investors.
Understanding how Principality stacks up against similar lenders helps you make an informed choice.
Choose Principality if: you're in Wales and value local, personal service. Choose Nationwide if: you want UK-wide coverage or consistently competitive rates.
Choose Principality if: you're based in Wales and want branch access. Choose Skipton if: you need UK-wide coverage or their specific niche products.
Choose Principality if: Wales-based borrowing with personal service is a priority. Choose Yorkshire BS if: you need UK coverage or its subsidiary brands' products.
Principality occupies a specific niche: strong customer service, good first-time buyer products, a Welsh regional focus, and mutual values. It isn't trying to be the cheapest lender on the market, but rather one that provides reliable service and supports its core customer base.
If the lowest possible rate is your priority, you'll likely find better options elsewhere. If you value service, local presence, and the building society ethos, Principality deserves serious consideration.
First-time buyers in Wales: if you're buying your first home in Wales, Principality's combination of 95% LTV mortgages, branch network, and local expertise makes it a strong choice.
Those needing family help: the Joint Borrower Sole Proprietor mortgage is excellent for first-time buyers who need parents' income to boost affordability without putting parents on the property title.
Borrowers who value personal service: if you want to speak to real people in branches, get personalised guidance, and deal with a lender that knows your local market, Principality delivers.
Welsh property buyers: whether residential or holiday let, Principality's understanding of the Welsh property market is an advantage.
Self-employed borrowers with good credit: Principality's flexible self-employment criteria suit contractors and business owners who can evidence their income.
Borrowers buying in Scotland or Northern Ireland: Principality simply doesn't lend there, so you'll need to look elsewhere.
Those with significant credit problems: Principality isn't a specialist adverse credit lender. If you have recent debt issues, missed payments, or other credit concerns, specialist lenders will likely offer better options.
Rate-focused borrowers: if getting the absolute lowest rate is your priority, you'll likely find cheaper options elsewhere.
Complex buy-to-let investors: those wanting HMOs, student lets, large portfolios, or debt consolidation against rental properties will find Principality's criteria too restrictive.
Highly digital-first customers: if you want a slick app-based experience, Principality's technology may feel dated compared to newer lenders.
Principality could suit you if:
Consider alternatives if:
How we can help
Principality Building Society delivers on customer service. Its 80% customer score in Which? research, alongside six consecutive years of What Mortgage Awards for customer service, demonstrates a genuine commitment to member experience. For borrowers who value personal service over purely digital interactions, this matters.
Its product range suits mainstream borrowers well. First-time buyers benefit from 95% LTV mortgages and specialist options like Joint Borrower Sole Proprietor products. Self-employed borrowers with clean credit will find reasonable criteria. Buy-to-let and holiday let products are available, albeit with some restrictions.
The geographic limitation is significant. Only lending on properties in England and Wales immediately rules out a large portion of UK borrowers. If you're buying elsewhere, Principality simply isn't an option.
Rates are competitive but rarely chart-topping. If saving as much as possible on interest is your priority, you'll likely find better rates elsewhere. But if you're weighing rate against service quality and the building society ethos, Principality's modest premium may be worthwhile.
We'd suggest Principality Building Society for:
We'd suggest looking elsewhere if:
Common questions
Yes. Principality Building Society has been operating since 1860 and is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority under registration number 155998. Deposits are protected by the Financial Services Compensation Scheme up to £85,000.
Principality was founded in Cardiff in 1860, giving it over 165 years of experience in mortgages and savings. It's one of the oldest building societies in the UK.
Initially, Principality conducts a soft credit search that won't affect your credit score. When you proceed with a full application, a hard credit check will be performed, which will appear on your credit file.
You'll typically need proof of identity (passport or driving licence), proof of address (utility bill or bank statement), income evidence (payslips and P60 for employed applicants, or accounts and SA302 for self-employed applicants), and bank statements showing your deposit source and spending patterns.
Yes. Principality accepts self-employed applicants and typically requires two years' accounts. For established businesses with turnover exceeding £100,000, it may accept one year's accounts. Contractors with at least 6 months remaining on their contract may qualify based on contract value.
Principality isn't a specialist adverse credit lender. It considers applications holistically, but if you have significant credit issues, you'll likely get better results with specialist lenders. We can help match you with appropriate lenders for your circumstances.
Standard residential mortgages must be repaid before the eldest applicant's 76th birthday. For certain later-life lending products, the maximum age at the end of the term extends to 85.
Yes. Principality's Joint Borrower Sole Proprietor mortgage allows up to four people's income to be used for affordability, but only one person (or couple) owns and lives in the property. This is ideal for parents helping children buy without being on the property title.
Yes, up to 75% LTV with interest-only available. Principality requires rental coverage of around 145% of the mortgage payment, calculated at a stress-tested rate for new purchases. However, it doesn't lend on HMOs, student lets, or for buy-to-let debt consolidation.
According to Which? analysis, Principality appears in best-buy tables less frequently than average, suggesting its rates are reasonable but not consistently the cheapest. It has shown strength in specific areas, such as two-year trackers and JBSP products.
Yes. You can overpay up to 10% of your outstanding balance per calendar year without incurring early repayment charges. This applies to fixed-rate mortgages; other products may have different terms.
No. Principality only offers mortgages for properties in England and Wales. If you're buying in Scotland or Northern Ireland, you'll need a different lender.
Straightforward applications typically take around 3-4 weeks from application to offer. Complex cases may take longer. Mortgage offers are valid for 6 months, or 8 months for new builds.
Principality contacts customers approaching the end of their fixed-rate period to discuss options. You can switch to a new product, often via a simplified process, remortgage elsewhere, or move onto the standard variable rate. Speak to an advisor before your rate ends to understand your options.
Principality offers online account access rather than a dedicated mortgage app. Some customers have noted that its online systems feel dated compared to newer digital lenders.
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