Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Building Society as it relates to mortgages in the UK. Building SocietyA building society is an organisation owned by its members (rather than by shareholders) which pays interest on deposits and lends money on the security of property to enable members to buy their own homes. This money used to come exclusively from individual saving members who are paid interest. These days an increasing proportion, but still a minority of the funds are raised on the commercial money markets. Increasing numbers have converted to banks in recent years, paying windfall profits to the owners (demutualisation). British equivalent of United States savings and loan association.
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