An institution or organisation that is regulated by the Building Societies Act.
Building Societies are mutual organisations which are owned by their members and
they are restricted to the amount of their own money which they are allowed to
raise from the money markets.
Broadly speaking this means that a certain
percentage of their lending has to be from their own funds ie their members
Also the Building Societies Commission who are the governing body lays down
certain restrictions on criteria that can be used for lending. Therefore
building societies are less able to help with certain categories of loans than
banks such as self-certification.