Virgin Money today acquired Church House Trust (a regional bank) for just over £12M, with a plan to inject a further £37M.
This acquisition offers Virgin the opportunity to expand into retail banking, enabling it to offer mortgages and deposit accounts.
It is expected that Virgin Money will change its name to Virgin Bank during 2010.
However, this is not the first time the Virgin have been involved in the mortgage business. Virgin once had a JV with the Royal Bank of Scotland (RBS), and offered the "Virgin One Account" mortgage. In due course RBS took 100% ownership of this.