Building Societies have been praised for their role in providing responsible lending. Following this a consultation has been launched to review the services that they provide and the legislation restrictions that they work within.
The Government hope to be able to provide a revised framework that will enable Building Societies to provide a better, more competitive service. The consultation will cover views on current legislation and discuss any proposed changes. The consultation will close on 12 September.
Our view
This smacks of interfering with natural competition. If mutual building societies, who sell their services on the back of mutuality, cannot compete in a competitive market, then so be it. They should not be given a helping hand just because their lending policy is better. They will still not be able to compete. It is the larger, profit orientated lenders who are lending without caution that need to be tackled.