Virgin has some way to go if it is to secure the full support of intermediaries in its bid for Northern Rock, according to a survey by BDRC.

Conducted in October, when only Virgin and JC Flowers were in the frame to acquire the beleaguered lender, the Project Mercury Survey revealed only 8% of intermediaries would be more likely to recommend Virgin to clients if their bid for the acquisition of Northern Rock was successful.

Despite the low figure, intermediaries were less enthusiastic about the competition, with only 4% likely to recommend a JC Flowers-acquired lender.

Chris Cummings, director general of the Association of Mortgage Inter­mediaries, said without the support of advisers neither bid will prove successful, as Northern Rock relied greatly on the support of brokers and even more so since its brand had received a beating. He added: “Having the backing of intermediaries is massively essential for anyone trying to convince that their bid for Northern Rock can be trusted.”

Tom Cleary, director of Mortgage Find, said: “From a broker point of view, when Branson launched Virgin he said he did not believe in intermediaries and so would not pay broker fees, so Virgin would have lost brownie points with brokers. From a public perspective, of course it is going to help if Virgin acquires Northern Rock. Other contenders, such as Cerberus, are faceless entities, so its name will not help.”

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James Hutson, analyst at KBW, said intermediaries understood the Virgin brand and if another company acquired the lender but decided to keep the Northern Rock brand, it could be perceived as selling an impaired product.

He commented: “Intermediaries are everything to Northern Rock. They push the products and are the lifeblood for that business. Intermediaries may feel it is easier to sell a Virgin-branded product than a Northern Rock one. Shareholders will have the final say on its fate.”