Mortgage Introducer reports a source saying the deal was “as good as done” although final contracts are still to be signed.
“Everyone was expecting Virgin Money to seal the deal and they are going to announce they have in the next few weeks,” the source revealed to MI.
However, a Virgin Money spokesman said Virgin submitted its bid three weeks ago and expected to hear the result at the end of August/beginning of September.
“We submitted our proposal so the ball’s in UKFI’s court,” he said.
Last month Wilbur Ross, chairman and chief executive of private equity firm WL Ross who provided £100m for the Virgin bid and promises a further £500m if the bid is successful, said he was confident Virgin’s bid would win.
Several bidders are believed to have put in proposals for Northern Rock, including Virgin Money, Paragon Group and private equity firm Resolution.
Yorkshire and Coventry Building Societies have subsequently ruled themselves out of the running.
