Well, after reading over an application, I decided I needed to detail muggle/wizard relations a bit more than I have. This is my first rpg I've been a mod of, so be patient. Also, I would like it if people would reply to the post about family and how they fit into the big scheme of things.
In Ancient Britain, there were no muggle/wizard separation. Magical folk were regarded by the muggles as just special. It often did run in the family and father would teach magic to son and daughter to mother etc etc.
When the Romans invaded, their ideals were pushed on the people there. Roman wizards looked down upon the British wizards for fraternizing with muggles. This caused a war. Unfortunately, it was the war between this clash (as well as other factors, including Christianity) that separated the two worlds. The Roman wizard clan of Vespillo became the family in charge. It was them that instilled the feudal exchange of power.
In Rome, Roman wizards were not that much different from the senate there. If the leader wasn't liked, the other families would just gang up on him and kill him.
But I digress. Eventually, the British families wanted to gain control. The Black family was the one to do so. However, after many centuries of not interacting much with muggles stayed the norm. The Blacks weren't as militant at muggle oppression at first. In fact, they tried to reconnect the muggle world with the wizard world. When such was met was violence, the Blacks changed their tune. Other families believe that uniting is not impossible. And there are others who believe that maybe they will be best left alone.
Outside what is modern England, where the Roman grasp wasn't as strong, muggle/wizard relations are slightly different. In Wales, magical folk are seen much like special muggles. Most of them end up having holdings. In places like Scotland and Ireland, the magical folk are held in high esteem. In Scotland, those with magic might end up being rulers of a clan. In Ireland, the families are either regarded with respect or fear. Some Irish magic families want to be left alone.
The Romans weren't the only group that invaded the British Isles. The Vikings have recently invaded and conquered parts of the island. Unlike Rome, the Vikings are being controlled by Viking wizards. Pretty much, the Vikings are a result what some of the British wizards could not help but admire. The norsemen weren't necessarily being controlled by magic, but their leaders were magical themselves. Luckily, they don't discriminate for magical blood.
I hope that makes sense. If there are any questions or comments, don't be afraid to ask.