Doing it for the right reasons matters
Skipton Building Society is a mutual organisation which operates in the interests of its members. It is run by a board of directors who are responsible for deciding the strategy. They act as trustees, safeguarding Skipton’s assets so that future members will have access to cheaper mortgages and higher interest rates for savers.
Being able to have your say matters
Being a mutual means that most of our customers, who have a mortgage or savings account, are members and have certain rights to vote and receive information. They can also attend and speak at our AGM. Each member has one vote regardless of how much money they have invested or borrowed, or how many accounts they hold.
Offering a better service matters
Building societies differ greatly from banks that are often listed on the stock market and are owned by and run for their shareholders. Building societies such as Skipton have no shareholders requiring annual dividends because they are not companies.
This enables us to run on much lower costs and offer cheaper mortgages and better rates of interest on savings than banks.
The smallest of differences matters
A way of examining how much value a customer is getting from a financial organisation is to look at the difference between the interest rate a customer receives for their savings and the interest rate they pay for their mortgage. The narrower the difference between the two, the better value the organisation is offering.
This is called the net interest margin and, as of 31 December 2006, Skipton’s was 0.72% - one of the lowest in the industry. Most building societies operate on margins of less than 1.5% whereas banks tend to have margins above 2%.
Giving something back matters
Through the Community Contribution Award scheme and the Charitable Foundation, Skipton is committed to enhancing the local communities where our branches reside by offering financial assistance to worthy causes.
Skipton also heavily support the NSPCC and both staff and customers have time and time again demonstrated their generosity by raising and donating money at national fundraising events such as Comic Relief and Children in Need.
For more information about the sponsorship and community work undertaken by Skipton, visit the Skipton Building Communities section.