Vernon Building Society

Vernon Building Society is a UK building society built around two things: savings accounts and mortgages. It takes money from savers and lends it out against property, and that pairing is the whole of the business: it does not run the current account networks, credit cards or investment products you get from the big banks. Its website is www.thevernon.co.uk¹.

It is one of a group of 42 UK building societies represented by the Building Societies Association². A building society is a mutual: it is owned by its members, the savers and borrowers, rather than by outside shareholders, and the sector's trade body describes this as the mutual difference, with societies typically ploughing proceeds back into products and services rather than paying dividends³. Vernon also appears on the Bank of England's list of building societies incorporated in the UK, under the same reference number, 195475, that it holds on the FCA Register¹.

What Vernon Building Society offers

Vernon's business is the classic building society pairing: it takes money from savers and lends it out as mortgages. That means the product range is narrower than a high street bank's: no credit cards, no personal loans desk in the banking sense, no current account network in the way the big banks run them. What societies offer instead is a focus on those two products, done through a branch-based, member-owned model.

Within mortgages, Vernon is one of the building societies the Building Societies Association names as providing finance for self-build and custom build projects⁶. That is a specialist corner of the mortgage market where smaller societies have a strong presence, because the lending is hands-on and does not fit the automated processes the largest lenders prefer. Vernon's own website carries its current product range, criteria and terms, and that is where today's rates and limits should be checked, since this page does not carry product figures.

For savers, the society takes deposits across the usual building society account types. The general guides on savings accounts and ISAs explain how these products work, and Vernon's site lists which accounts it currently has open. Because it is a mutual, savers are members of the society rather than just customers, which is the structural difference between a society like Vernon and a shareholder-owned bank³.

Self-build and custom build mortgages

The Building Societies Association's consumer factsheet on self and custom build names Vernon Building Society among the societies that provide finance for these projects⁶. A self-build mortgage funds a home you build yourself, on a plot you buy; a custom build is a closely related arrangement where you work with a developer on a plot prepared for you. Either way, the loan is released in stages as the work progresses rather than in one lump sum on completion, which is what makes this lending different from a standard mortgage.

Because the money is staged, the lender needs to understand the project in detail before it agrees anything. Other societies on the same BSA list illustrate how varied the requirements are. Suffolk Building Society, for example, says full costings must be provided and offers a self-build budget planner to help applicants prepare them, and it lends across a range of project types including new builds from scratch, conversions, renovations, knock down and rebuilds, and mid or partially built projects⁷. Saffron Building Society describes its self-build lending as available to people buying a plot to build a new house or refurbishing an existing structure for their own occupation⁸.

Distribution differs too. Chorley Building Society offers its self-build and custom build loans exclusively through Buildstore/Buildloan, a specialist intermediary, rather than directly to applicants⁹. Its Buildloan products show the kind of terms this market involves: one such mortgage has a minimum loan of £150,000, permits unlimited overpayments, and reserves the right to ask for evidence of the source of funds¹⁰. These are another society's terms, not Vernon's, but they give a fair picture of the criteria a self-build lender will want to discuss: your build budget, your project plan and where your money comes from.

If you are considering a self-build project, Vernon's own website sets out its current criteria and how it handles stage payments. The mortgages and home buying guides cover the general ground, and comparing several societies on the BSA list is worthwhile because terms in this market differ considerably from lender to lender⁶.

Mortgages for buying or remortgaging

Building societies as a group are significant mortgage lenders. They approved 85,234 mortgage loans in the first quarter of 2023 alone, January to March, according to the BSA's statistics¹¹. Vernon lends for property purchases and remortgages, and its website lists the borrowing situations it currently handles, which is where to check what it will consider for a standard purchase or a remortgage.

Across the sector, societies lend across the situations most borrowers fall into. Furness Building Society, for instance, lists moving home, remortgaging, first time buyers, the self-employed, buy-to-let, holiday-let, lending into retirement and short-term lending¹². Skipton covers first-time buyers through to buy-to-let, moving home and remortgaging¹³, and Principality offers a wide range of fixed and variable mortgage products¹⁴. Teachers Building Society offers fixed and variable rate deals for home movers¹⁵, and Scottish Building Society makes guarantor mortgages available¹⁶. Vernon's own range should be checked directly, but the sector pattern is that societies often take cases the largest automated lenders decline, such as self-employed borrowers or later-life lending.

Some societies have developed products for particular family situations. Skipton Building Society has offered a no-deposit mortgage aimed at renters who cannot save for a deposit¹⁷, and joint borrower sole proprietor mortgages, which let a parent's income support the loan without their name going on the title, have been available through societies including Market Harborough, Furness and Hinckley & Rugby¹⁸. These are examples of the sector rather than Vernon's own shelf, but they show the kinds of arrangements worth asking about.

You can apply for a mortgage direct to a building society or other lender, or use a mortgage broker to help you, as the BSA's consumer guidance sets out¹¹. A broker can be useful where your circumstances are unusual, because they can see which societies' criteria fit before you apply. The credit scores guide explains how your credit history affects a mortgage application.

Savings accounts at Vernon

Vernon accepts deposits, which is the other half of the mutual model: savers' money funds the society's mortgage lending¹. The account types building societies typically run include easy access accounts, fixed rate bonds, notice accounts, regular savings accounts, cash ISAs and accounts for children, and Vernon's website lists which of these it currently has open. The savings accounts guide explains how each type works, and the ISA guide covers the tax-free wrapper.

How you open and run a savings account varies by society, and the sector's habits give a good sense of what to expect. Chorley Building Society lets you apply for savings accounts online, at a local branch or by post¹⁹. Family Building Society takes applications online, by post or at its Epsom branch²⁰. Before applying, Chorley asks savers to read the application checklist on the product page, the account's summary box, the tariff of fees and charges, and the FSCS information sheet and exclusions list¹⁹, which is a sensible reading list whatever society you save with.

Paying money in also varies. Swansea Building Society accepts cash at any of its branch offices and one-off electronic payments from a UK bank or building society account²¹. Penrith Building Society's Junior Saver can be funded by faster payment, standing order, cash or cheque in branch, or a cheque through the post²². Vernon's own site sets out the payment methods it accepts for each account, and any restrictions, such as a maximum number of withdrawals a year, will be in the account's terms.

Who can get a Vernon mortgage or savings account

For savings, the starting point is identity and address verification. The Marsden asks branch applicants to bring proof of identity, such as a passport or driving licence, and proof of address, such as a utility bill²³, and Market Harborough Building Society publishes guidance on proving your identity for its accounts²⁴. Vernon runs the same kind of checks when you open an account. Some accounts at any society carry their own conditions, such as a minimum opening balance, a residency requirement or an age limit, and these are stated in each account's terms.

For mortgages, eligibility is driven by affordability: the society assesses your income, outgoings and the project or purchase, and self-build lending adds the build budget and plan to that. The BSA's guidance on how to get a mortgage walks through what lenders look at¹¹. There is no suggestion in the register or the sector material that Vernon restricts membership by geography or profession, but societies do sometimes target particular groups, so check its criteria before applying.

Two wider points are worth knowing. Banks and building societies must make sure their services are accessible, as consumer guidance for people in later life sets out, and you can ask a society to make adjustments if a standard process is difficult for you²⁵. And if you need someone else to operate an account for you, a power of attorney or court-appointed deputy arrangement can be registered with the society; Family Building Society, for example, lets instructions be given online, over the phone, by post or at its branch once an attorney or deputy is registered²⁶.

How to bank with Vernon

Vernon is a branch-based society, and the sector's model is a mix of branch, post, phone and online service rather than the app-first experience of the digital banks. Newcastle Building Society has even opened new branches in local community centres to serve rural towns that have lost their banking services, which shows how societies treat the branch as part of the offer rather than a cost to cut²⁷. Check Vernon's website for its current branch locations, phone lines and opening hours, and for which services each channel covers.

For day-to-day savings management, the pattern across societies is that you open an account, then fund and manage it through whichever channels the society offers. Furness Building Society's five year bond, for example, can be opened via its savings app, its website, a local branch or by phone, with a downloadable application form as well²⁸. Newcastle Building Society lets you open online by following the steps on screen, at a branch, or by calling its contact centre²⁹. Marsden Building Society runs an e-savings platform that anyone with one of its accounts can register to use²³.

Money movement is usually electronic. Swansea accepts one-off electronic payments from a UK bank or building society account²¹, and Penrith takes faster payments and standing orders alongside branch cash and cheque²². Because Vernon does not hold permissions for providing current accounts at scale¹, most savers hold a current account elsewhere, normally a bank, and link it to their Vernon savings for transfers. The current accounts guide covers choosing one, and the money transfers guide explains how UK payments clear.

Opening an account or applying for a mortgage

For savings, the process at a typical society runs in a few steps:

1. Choose the account and read its terms, summary box and the society's tariff of charges¹⁹.
2. Apply through the channels the society offers: online, in branch, by phone or by post²⁹.
3. Verify your identity and address, with documents such as a passport and a utility bill if an electronic check does not confirm you²³.
4. Fund the account, by electronic transfer, cheque, or cash in branch where accepted²¹.

Postal applications are common in the sector. Marsden lets you download a form, post it in, and carries out an electronic ID check on receipt²³. Penrith's Junior Saver can be opened in branch or by post, with application packs downloadable from its website²². Family Building Society notes that an opening deposit can be made by cheque or by transfer from another account held with the society²⁶. Vernon's site states which routes each of its accounts accepts.

For a mortgage, you can apply direct to the society or use a mortgage broker¹¹. For a self-build or custom build project, expect a longer conversation than a standard purchase: the society will want your project plans and costings before it makes an offer, following the pattern the sector sets⁷. Once an offer is made, the conveyancing and valuation stages run as they would with any lender, and the mortgages guide explains each step.

Service and complaints: where to get help

If something goes wrong, the first step is to raise it with the society directly. The sector's standard routes are a complaint to the branch or to head office. Harpenden Building Society asks customers with a complaint about the service to contact the branch manager at their local branch or its Savings Operations Manager at head office, by telephone or in writing³⁰. Leeds Building Society routes complaints through a dedicated complaints page on its website⁵. Vernon's own site and branch staff are the place to start, and it is worth keeping a note of dates, what was said and what you asked for.

If the society cannot resolve your complaint, or you are not satisfied with its final response, you can refer the matter to the Financial Ombudsman Service, the free independent body that adjudicates disputes between consumers and financial firms. The consumer protection guide explains how the ombudsman process works and what it can award.

For free, impartial help with money questions more broadly, MoneyHelper guidance and the site's how to pages cover everyday tasks, and the debt guide signposts free debt advice charities if affordability is the underlying problem.

How your savings are protected at Vernon

Money you hold in eligible savings accounts with Vernon is protected by the Financial Services Compensation Scheme, the FSCS. The FSCS is the UK's statutory compensation scheme, and its coverage includes deposits, current accounts and savings accounts³¹. It pays out when a firm is unable to meet its financial obligations, so if the society failed, eligible depositors would be compensated rather than left as ordinary creditors. The FSCS's own protection checker lets you confirm cover for a specific account before you rely on it³¹.

Building societies state this protection prominently across the sector. Saffron Building Society's FSCS information sheet confirms that eligible deposits are protected by the scheme³², and Family Building Society marks its savings accounts as FSCS protected on each product page²⁰. The protection is per person per society, so if you hold accounts with Vernon and with a separate bank, each is covered in its own right. Joint accounts are covered as well, since FSCS deposit coverage extends to savings accounts held jointly³¹.

You can verify the society's standing yourself on the FCA Register using its reference number, 195475, which records authorised status since 1 December 2001¹. It also appears on the Bank of England's list of UK building societies⁴. The banks and building societies directory lists other mutuals if you want to compare where else your money could sit, and the consumer protection guide explains the wider safety net around UK financial services.