It is the second largest building society in United Kingdom, with total assets of more than $51 billion. But how does Coventry Building Society make money?
Building societies are part of our financial system and they play a big role in it.
In the United Kingdom, one such institution is the popular Coventry Building Society.
But, do you know how Coventry Building Society makes its money?
Coventry Building Society is one of the viable options in the United Kingdom when it comes to savings and home ownership.
When you save money, it becomes easier for you to leverage those savings to secure home loans or build wealth through investments.
Over the years, Coventry Building Society has positioned itself an institution that you can rely on.
Many customers in the UK have borrowed from CBS to buy homes for the first time or to re-mortgage their homes.
As a business, this has allowed Coventry Building Society to generate and make money.
In this article, you will learn and get a deeper understanding of how the business model of CBS works, and how it makes money.
Take a sit, and let us discuss how Coventry Building Society makes money today.
How Does Coventry Building Society Make Money?
Coventry Building Society makes money mainly in two ways;
- Mortgages
- Savings
When it comes to mortgages, Coventry Building Society makes money by providing loans to customers to acquire properties in the United Kingdom.
Coventry Building Society will lend to first-time buyers and home owners at 50%, 65%, 75%, 80%, 85%, 90% and 95% loan to value.
If you are re-mortgaging, you can borrow up to 90% loan to value.
Conclusion
Building societies play a big role in promoting a culture of savings and investments. They are key players in the financial and banking markets
Increasing financial inclusivity is something building societies can truly help us with in our countries.
While we are discussing how Coventry Building Society makes money, we cannot ignore the role it plays in helping people save and buy homes.
As internet connectivity continues to increase, Coventry Building Society has adopted online platform to serve customers.
The society’s online banking platform allows a customer to deposit, withdraw and transfer their money.
One of the largest segment CBS operates is in mortgages. It is also one the ways CBS makes money.
Through it’s mortgage products, Coventry Building Society lends money to first-time home owners as well as those interested in re-mortgaging their homes.
CBS deals will allow you to overpay up to 10% of the mortgage balance each year. Customers like this, a lot, cause it means you can reduce your mortgage debt each year by 10%.
If you do not know already, interest on loans is one of the ways banks make money.