Society's Chief Executive, Stephen Mitcham, comments on current market conditions and why the Society is a safe place for customers 17.10.2008
"In light of the media attention surrounding banks and building societies and the current economic climate, it is likely that some of our members may want to understand if there is any impact on Cambridge Building Society.

"In answering these concerns it is important to understand the core differences between banks and building societies. Banks are owned by shareholders and typically raise significant amounts of the capital they need to support lending through the wholesale money markets (by borrowing money from other banks and financial institutions). Building societies are mutual and owned by members. They typically rely much more on customer’s savings to provide mortgages.

"Cambridge Building Society raises all the money it needs to lend on mortgages from its saving members. It is not reliant on wholesale markets and as a result is not affected by the current extreme conditions that have impacted upon a number of banks.

"Cambridge Building Society is a safe home for savings. Customers are protected by government guarantee for the first £50,000 of their savings (£100,000 for joint accounts) under the Financial Services Compensation Scheme. The Society is independent and does not share this limit with any other parts of a group so the full amount is covered. Indeed no-one has lost money with a building society since at least 1945 when records began.

"We have a prudent and robust mortgage underwriting policy. We have never provided so called 'sub-prime' or higher risk mortgages. We are very careful to ensure that our borrowers do not overstretch themselves and this is reflected in our very low arrears record - one of the lowest in the industry.

"Our members can be assured that Cambridge Building Society remains financially strong."



Stephen Mitcham
Chief Executive