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Coronavirus - Help us to help you

We are working hard to maintain the best service we can for you. As you can imagine our telephone lines are exceptionally busy at the moment. So we are asking for your help too.

In the interests of the health of both our customers and our staff, please avoid visiting our branches unless necessary. Please telephone your local branch direct during our business opening hours if you have any queries or to register to use our online services.

From Thursday 7 January 2021, our branch opening hours will be: Monday to Friday 9am – 1pm.  Our Melton Branch  will be open on Saturday 9am to 12pm.  Our Grantham and Oakham Branches will be closed on Saturdays.  Branch telephones will be open 9am to 4.30pm Monday to Friday. 

Our telephone opening hours at Principal Office will be 9am – 6pm Monday to Friday and 9am to 12pm on Saturdays.

Please note visitors to our branches and Principal Office will be required to wear a face covering.

Thank you for your cooperation



Please beware of the following phishing email scam – National Trading Standards have passed on an alert about a phishing scam based on impersonating correspondence from the Government’s Job Retention Scheme.

  • The scam involves phishing emails to companies about the scheme
  • The emails pretend to be from Jim Harra, First Permanent Secretary and Chief Executive of HMRC
  • The sender email address used is
  • the emails use Official HMRC branding, and the message asks for the bank details of the recipient.

An example message is provided below – the typos are the fraudsters’ own work:

“Dear customer, We wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how to access the Covid-19 relief. You will need to tell your us which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.”


According to data from the Home Office and charities supporting victims, the pressures of living under COVID lock-down have caused a rapid increase in cases of domestic abuse. Abuse can take the form of coercive control, deliberate neglect and verbal or physical aggression. It often involves economic abuse (coercive control of the victim’s finances to steal their money and / or deny them the right to spend it).  We’re supporting the Government’s campaign to raise awareness about help for victims of domestic abuse.  You can find further guidance on how to get help here:


Scammers are sending emails posing as the Zoom download manager asking the recipient to complete their download by clicking “next”, which releases malware when clicked. The only safe way to set up Zoom for personal use is to go on the Zoom official website and download it yourself.


Please beware of a new text scam purporting to be from the Government which informs the recipient via a text that they have been issued a £250 fine for leaving the house during the lock-down as the Government have been tracking their movements using their phone. The recipient is told that if they don’t pay immediately they will incur a heavier fine and encouraged to click on a link to make the payment which may deliver malware as well as taking the payment and their account details.


During the coronavirus outbreak, many companies and organisations have sent emails containing COVID19 updates to their customers to make them aware of their current response and status. As these types of emails have now become increasingly frequent, criminals have started to use this familiarity to their advantage. These fraudulent emails, framed as a corporate COVID-19 response, contain malicious attachments and are targeting individual consumers and companies alike…

Emails may also be disguised as coming from a hospital that inform the recipient they may have come in contact with an individual who tested positive for COVID-19. The email instructs the recipient to download an attached Excel file, complete a form, and bring it to the nearest hospital. Once the attachment is downloaded, the malware has been activated and the attackers may be able to access your data.

Please keep in mind that typically, legitimate COVID-19 response emails have a message only in the body of the email and do not contain attachments.


There is some evidence that criminals are attempting to use the current COVID-19 situation as an exploitation opportunity, so please be extra vigilant before clicking on an email about the coronavirus outbreak. If a claim sounds too good to be true, it probably is.

Criminals use exceptional circumstances like the current situation as a chance to pose as employees of a genuine organisation such as building society, bank or police and target you for fraud scams. They may claim they are dealing with coronavirus-related issues that require you to respond by paying money or providing personal information that will allow them to access your account. They often use pressure tactics to stop you thinking about want they want you do for them.

To help you stay protected, here are some things that we will never do:

  • Ask you to disclose your PIN number or other passwords for your accounts
  • Encourage you to move funds from your own account into a different “safe” account
  • Charge up-front fees for repayment holidays
  • Make home visits to collect mortgage arrears on your doorstep
  • Demand an immediate payment of mortgage arrears over the phone
  • Demand payment of mortgage arrears via email providing you with a link through which to make payments.

Please remain vigilant.

Stop – Take a moment to think.
Challenge – Don’t be afraid to ask questions or to say “No” and end the conversation.
Protect – Contact the building society or the bank from which you have made a payment immediately if you think that you have been the victim of fraud.

Coronavirus Update

We understand that some customers may be worried about the effect that contracting the Coronavirus (COVID-19) could have on their finances, for example due to a drop in income as a result of contracting the virus or because of the measures imposed to stop it spreading. If you have any concerns about how this could affect you and your mortgage, please click here to read the leaflet produced by the Building Societies Association and National Debtline or please get in touch on 01664 414141.

Please click here to see a list of Frequently Asked Questions for our members.

The Melton Building Society


Assets & Liabilities


Download information as a PDF document.


The Assets & Liabilities Committee (“ALCO”) is an executive committee that reports into the Risk Committee.


The ALCO shall comprise of the following members or be as decided from time to time by the Board:

  • Chief Executive
  • Deputy Chief Executive & Finance Director (current Chairman)
  • Commercial Director
  • Chief Risk Officer
  • Financial Controller
  • Director of Sales & Marketing
  • Society Secretary (Secretary)

The Chairman of ALCO is appointed by the Board.


For a quorum to be established, a minimum of 3 of the above members must be present, one of whom should be a member of the Board.


Mini ALCO facilitates decision making between meetings. A minimum of 3 of the above members must be present, one of whom should be a member of the Board.  Any decisions made by Mini ALCO are to be ratified at the following ALCO meeting.

Attendance at Meetings

The members as outlined above should normally attend meetings. In addition, other professional advisers and Society officers should be invited to attend depending on the agenda to be discussed. Any Non-Executive Director and representatives of the Group’s Internal Audit function may attend an ALCO without invitation.

Frequency of Meetings

Meetings should be held on a monthly basis, with no meeting held in August each year.

The Chairman of ALCO may also convene a special meeting of the Committee if, in his judgement, an issue arises that cannot wait until the next regularly scheduled meeting and the issue cannot be adequately dealt with via a quorum of ALCO members or the Mini ALCO.


ALCO has authority to make decisions on all areas identified within the Responsibilities section of this Terms of Reference, but at all times operating within the Group Risk Policy & Appetite, Financial Risk Management Policy and Group Lending Policy statements as they apply to those Responsibilities.

ALCO is further authorised by the Board to:

  • to investigate any activity within the Responsibilities, and to provide proposals and recommendations to the Board on these matters.
  • to seek any information it requires from any employee, and all employees are directed to co-operate with any request made by ALCO.
  • to obtain external legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise.

ALCO provides management oversight (first line of defence) for asset and liability management within the Group and ensures treasury and lending operations are conducted within the parameters of the Group Risk Policy & Appetite statement.

All risks associated with the Society’s business and operations are monitored by the Group’s first line Executive Committees, EXCO and ALCO.  ALCO has specific responsibility for managing Mortgage and Treasury Credit Risk, Liquidity Risk, Interest Rate Risk, Pension Obligation Risk and specific areas of Business Risk consisting of all asset and liability product management (including related Conduct Risk matters), net interest margin management and capital management.  All other risk categories are monitored by EXCO.

The purpose and objectives of ALCO have been established as below:

1. Financial Risk Management

a) Recommend for approval by the Board the Financial Risk Management Policy, on at least an annual basis, including the review of all Financial Risk Management controls, policy limits and early warning indicators; and
b) Monitor activity under the scope of the Financial Risk Management Policy to ensure adherence to set policies and limits.

2. Credit Risk

Since the Group does not have a separate credit committee, the Risk Committee places reliance on ALCO in the following areas:
a) Review on at least a semi-annual basis the authorised counterparties list, and recommend to the Board new additions to the list for approval;
b) Monitor adherence to counterparty credit limits set within the Financial Risk Management Policy;
c) Monitor the overall mortgage portfolio to ensure that the emerging risks and trends are identified and actions taken where necessary;
d) Monitor mortgage arrears and forbearance and authorise mitigating actions;
e) Monitor mortgage credit risk stress tests and ensure sufficient capital is held in aggregate to cover expected losses arising; and
f) Monitor activity under the scope of the Group Lending Policy and ensure adherence to set policies and limits.

3. Concentration Risk

a) Monitor mortgage concentrations (geographic and large exposures) and make recommendations to the Board regarding any changes to the Group Lending Policy.

4. Liquidity risk

a) Assess the adequacy of liquidity assets held by the Society, in terms of quality and quantity, in relation to both expected (cashflow forecast) and unexpected events;
b) Review liquidity stress testing results and ensure the scenarios remain appropriate;
c) Ensure the liquid buffer assets held are always in excess of the minimum set by the Board and the regulator;
d) Review the requirements for wholesale borrowing; and
e) Review and recommend for approval to the Risk Committee the Contingency Funding Plan on a periodic basis.

5. Funding

a) Set the funding strategy parameters for the Executive to implement;
b) Review the mix, stability and tenure of retail, wholesale and other funding sources; and
c) Monitor asset encumbrance and ensure this remains with limits set by the Board.

6. Interest Rate Risk

a) Agree the Group’s interest rate expectations. Consider and authorise any specific actions arising from this agreed interest rate view;
b) Monitor the gap analysis and ensure the Society keeps within the limits agreed by the Board;
c) Monitor the results of the gap analysis stress scenarios and ensure the scenarios remain appropriate;
d) Monitor the use of interest rate derivatives used in the management of interest rate risk;
e) Monitor the impact of basis risk on the net interest margin and authorise mitigating actions; and
f) Monitor the impact of early prepayments and mortgage pipeline and their effect on interest rate risk.

7. Business risk

a) Review the Group’s net interest margin performance, including variances from plan, and authorise any specific actions arising;
b) Monitor the impact on net interest margin, profit and reserves from changes in the market value of liquid assets and derivatives;
c) Liaise with the Marketing and Sales functions in order to provide guidance on appropriate product mix and volumes;
d) Review and approve the pricing of new products within existing categories, including rates, fees or other product features;
e) Monitor product pricing and the assumptions used to price mortgage and savings products, including competitor analysis;
f) Consider the risk characteristics of new categories or classes of products prior to their approval by the Board;
g) Discuss and review trends in Government economic policy and economic conditions;
h) Monitor capital resources and capital requirements and ensure the Group’s capital risk appetite is adhered to; and
i) Monitor Recovery & Resolution Plan (RRP) Early Warning Signals (EWSs) and Invocation Trigger Points (ITPs) and ensure that any matters arising are highlighted to the Risk Committee and the Board.

8. Conduct risk

a) Consider the conduct risk implications of changes to existing or new products and authorise any specific actions arising.

9. Pension Obligation Risk

a) Monitor the pension scheme surplus;
b) Review the triennial scheme valuation and interim annual valuations, including their assumptions, and consider the need for any actions arising;
c) Review the results of stress tests on the pensions scheme surplus and consider any actions arising, particularly on capital adequacy; and
d) Review the pension scheme investments and consider any concentration risk both in isolation and together with the Society’s liquid asset investments.

10. Other Matters

a) Consider any training and development needs for ALCO members or those involved in asset and liability management to ensure the requisite skills are available to monitor and control all relevant risks;
b) Receive internal audit reports relevant to the Committee’s oversight responsibilities, including risk categories over which the Committee has oversight and the effectiveness of the Treasury control environment, and authorise any specific actions arising;
c) Review the Committee’s terms of reference annually and recommend any changes to the Board; and
d) Undertake an annual committee self-assessment.

11. Communication

a) ALCO shall also provide key management information to the Board on a regular basis (weekly ALCO dashboard);
b) ALCO holds a key role in liaising with the Board, the Risk Committee and the Audit & Compliance Committee and shall, as a minimum, provide these meetings with a written note of activities and key decisions made at each of its ALCO meetings.

Annual Timetable

In addition to the monthly business as usual items, the Committee will consider the following items at the meetings listed below:

January: Committee self-assessment

February: Financial Risk Management Policy review

March: Group Lending Policy review

April: Contingency Funding Plan review

May: Liquidity stress test scenario and assumptions review

June: Mortgage stress test scenario and assumptions review

July: Interest rate stress test scenario and assumptions review

August: No meeting

September: ALCO Terms of Reference review

October: Contingency Funding Plan test

November: Review of management information supplied to ALCO and other Committees

December: Product pricing model and assumptions