A NELSON-based building society is luring new customers in as the effects of the lending crisis sees a loss of consumer confidence on the high street.

Marsden Building Society, which has its principal office in Russell Street, Nelson, said the uncertainty in the lending markets had increased their customers as people looked to spread their money and use more local services.

This follows the news that Britain’s biggest savings bank Halifax, which holds one in five UK mortgages, is having to be rescued by a Lloyds TSB takeover.

The move, which could cost up to 40,000 jobs, came about after a loss of confidence stemming largely from its heavy involvement in the housing market.

Rob Pheasey, general manager for the group, said the society, which has six of its strongest performing branches in Burnley and Pendle, only lends the money they have in savings rather than borrow from financial institutions, like most banks and buildiing societies.

He said: “It is hard to quantify the success but our asset size is £300million.

"We have been prudent about how quickly we move the business and this is why we are not facing the difficulties some others are.

“They are dealing on a global market which is making losses.

“Customers want to put their money into a trusted institution and we are benefitting from this.

“I think there is also a move among customers to deal with someone local.”

The building society, which was primarily based in Nelson and Colne until it expanded into Morecambe, Lancaster and Kendal in the 1960s, has not diversified into other products, sticking to the savings and mortgage markets with 40,000 customers.

They have also benefitted from the statutory financial services compensation scheme which safeguards the first £35,000 of investors’ money in any bank or building society as this offers people an incentive to spread their money across different institutions.

Mr Pheasey said: “We have definitely seen an increase in trade.

"There is a significant move for customers looking to invest in building societies.

“Customers are looking to reduce the amounts of money they have with one building society by putting money into different ones to spread the risk.”