Is Virgin about to buy Nothern Rock

Sir Richard Branson could soon be at the helm of Northern Rock after Chancellor George Osborne placed it up for sale.

The entrepreneur would like to splash out on 660 Lloyds branches as well - and the deals would give his Virgin Money a real presence about the high street.

The Rock was nationalised in 2008 soon after it nearly collapsed partly because its mortgage lending was so generous.

Selling the Rock could bring the Treasury about one billion pounds.

The Lloyds branches are up for sale because the banking group was ordered by competition regulators to sell them.

This followed Lloyds Banking Group's merger with HBOS during the financial crisis.

The Lloyds sale includes the TSB name and the Cheltenham and Gloucester branches and could go for about three billion pounds.

Sir Richard said: "We have financing commitments from people to enable us to do both acquisitions if the prices is right. We have got most of the boxes ticked now and we were looking at the Lloyds figures yesterday.

"This is a big opportunity for us and is fantastically exciting.

"It will cost us millions to bid for both [Northern Rock and the Lloyds branches] but we will be spending those millions."

Private equity firms and US tycoon Wilbur Ross are expected to provide the funds to Sir Richard for the acquisition.

The Northern Rock purchase would give Virgin Money a big mortgage lending division.

This new player could really shake the mortgage and remortgage markets up for the benefit of home-owners and first-time buyers.

Sir Richard wanted to buy Northern Rock in 2008 after it went belly-up, but then Prime Minister decided to nationalise it instead.

Max Erskine from remortgagenow.co said: "A new player in the mortgage and remortgage markets might really help the house buyers.

"Other lenders would see a threat and would fight harder to keep customers and they'd do that by making their products more attractive.

"Branson is a populist and publicist and he will want to attract people to his mortgage and remortgage offers.

"Northern Rock was really the big name that summed up the financial crisis in 2008 and to see it back in private hands will be interesting.

"Selling it will hopefully get the taxpayers some of their money back. And it might also breathe new life into the north east where it is based.

"Despite Branson's magic touch for business, the mortgage and remortgage markets are unlikely ever to reach the state they were in prior to the crash where pretty much anyone could secure a loan.

"Deposits are always now likely to be required, which was not always the case, particularly with Northern Rock."