The new firm, named Co-operative Financial Services, will provide consistency across rates on all similar products through the merger. The first example of this is that over 35,000 Britannia members on SVR linked mortgages, which is 15% of the Britannia mortgage book, have seen their interest rate fall.

Neville Richardson, group chief executive of CFS, said: “The changes to SVR are the first example of our approach. By harmonising rates to the lower SVR, we are placing fairness to members, ahead of margin, because it is the right thing to do and we have the financial strength to do it.”

The Co-operative Financial Services comprises the Co-operative Bank – including the Britannia business and internet bank smile, the Co-operative Investments and The Co-operative Insurance. Platform Home Loans will be the official broker lending arm of the new group.

The business will be led by former Britannia group chief executive Neville Richardson, with Bob Burlton, the current CFS non-executive chairman, chairing the new CFS board.