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The deal was initially announced on 16 November 2011 and sees Virgin Money paying £747 million for the bank.

 The 'bad' part of Northern Rock, which houses toxic loans and impaired mortgages, will remain under Government ownership.

Under the terms of the agreement, Virgin Money will acquire 75 Northern Rock branches, which will have their names changed to Virgin Money. Virgin Money recently embarked on establishing a branch network of its own. It will add one million customers to its existing three million customers, a mortgage book worth £14 billion and savings of £16 billion. It will also acquire 2,100 employees and Virgin Money has pledged that there will be no further compulsory redundancies, beyond those already announced, for at least three years from completion.

 "We have a unique opportunity to build a new kind of bank in the UK," said Jayne-Anne Gadhia. "A bank that's honest, fair and transparent. A bank that will aim to make a real difference and provide enhanced competition in UK retail banking. Northern Rock and Virgin Money fit together perfectly and both have real experience in delivering service that customers truly value. We will now work together in our quest to change banking for the better."