“It is very much alive and kicking in the building society sector.”Mutuality matters but we also recognise that an organisation really does have to work hard to make it matter,” he added.Yet it is merger speculation, not the death of the mutual, that is the current hot topic in the sector.As the chatroom comments quoted above show, there is great interest in whether new members of merged building societies will qualify for any windfalls. Now, in the event of any demutualisation – as unlikely as many think that might be for such a small society – new members will have the same rights as existing ones, as long as they put at least £100 into the mutual.The successful demutualisation campaign run by the insurer Standard Life ended last week when 98 per cent of members who voted sanctioned its plans to float on the London Stock Exchange. This is intended to deter the “carpetbaggers” – those who open an account simply to cash in on possible gains from stock market floats.But the Kent Reliance building society caused a stir recently by abandoning its demand that all new customers with mortgage or savings accounts sign a “charitable assignment” form, so giving away any windfall they might receive. At the same time, they are giving a commitment that branch closures will be kept to a minimum.Most of the UK’s 63 building societies have long insisted that new members sign away rights to any demutualisation payouts. Speculation is rife that more are to come.The merger activity is being driven by the potential for building societies, or mutuals, to cut their costs and gain a greater share of the mortgage, savings and investment markets.

What is normally one of the quieter sectors of the UK’s ferocious financial services market has become the focus of lively consumer interest since the start of this year.Three proposed mergers – Leeds and Mercantile, announced in January; Portman and Lambeth in March; and, 10 days ago, Newcastle and Universal – will deliver windfalls to their members ranging from £100 to £2,500. “How many more will go this year?” frets Wjet4. “I’ve yet to find a building society that does not have a process of making you donate any windfall to charity,” adds Tinker.
“And what to do about Nationwide, that granddaddy of them all?” ponders MsL.When talk of their mergers and demutualisations reaches internet chatrooms and blogs, it’s a sure sign that building societies are buzzing. For ferry services to Mull, visit calmac.co.uk.For more information on Mull and Iona, go to visitscottishheartlands ..

He travelled to Mull with Virgin Trains (08457 222333; virgin trains.co.uk) which has fares from London to Glasgow Central from £30 return, and ScotRail (08457 550033; first group /scotrail) which offers return fares from Glasgow Queen Street to Oban from £16.50. The path takes you, via Maol Farm, back to the nunnery.With time before my ferry back to Mull, I ordered tea and cake in the pleasant garden of the St Columba Hotel, accompanied by the distinctive chirrup of the corncrake, a rare bird making a comeback in the Hebrides.Distance: Eight milesTime: Up to five hours, including stops.Mark Rowe stayed at The Rowans (01688 302086; salmon lady /rowans.html) – a self-catering Victorian cottage overlooking Tobermory Bay on Mull, available from around £400 per week. If you time your visit for low tide and there is a decent swell in the sea, the Spouting Cave puts on a show, gurgling up water high against the cliff.Go through the gate and head back down the path towards the east coast. About two thirds of the way down, at a crossroads, turn left along a pebbly track.