Ketley's Building Society
Encyclopedia
Ketley's Building Society, founded in Birmingham
, England
in 1775, was the world's first building society
.
The society was formed by Richard Ketley, the landlord at the "Golden Cross" inn at 60 Snow Hill. Tavern
s and coffehouses were important meeting places in eighteenth century Birmingham and frequently formed the focal point for clubs and societies.
Ketley's building society existed to pool the resources of its members, who would contribute a specified amount into a shared building fund and draw lots to select which of the members would have land purchased and a home constructed. With property in place as security
, further finance could be attracted to the society through loans at a reasonable cost.
The only documentary records of the society are three advertisements offering shares in the society that appeared in local newspapers in 1778 and 1779. The third of these advertisements claimed that £80 had been advanced on the society's shares.
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
in 1775, was the world's first building society
Building society
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially mortgage lending. These institutions are found in the United Kingdom and several other countries.The term "building society"...
.
The society was formed by Richard Ketley, the landlord at the "Golden Cross" inn at 60 Snow Hill. Tavern
Tavern
A tavern is a place of business where people gather to drink alcoholic beverages and be served food, and in some cases, where travelers receive lodging....
s and coffehouses were important meeting places in eighteenth century Birmingham and frequently formed the focal point for clubs and societies.
Ketley's building society existed to pool the resources of its members, who would contribute a specified amount into a shared building fund and draw lots to select which of the members would have land purchased and a home constructed. With property in place as security
Collateral (finance)
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...
, further finance could be attracted to the society through loans at a reasonable cost.
The only documentary records of the society are three advertisements offering shares in the society that appeared in local newspapers in 1778 and 1779. The third of these advertisements claimed that £80 had been advanced on the society's shares.