Virgin eyes a return to mortgage market

Virgin Group is preparing for a return to the mortgage market and wants to obtain a licence to become a High Street bank, billionaire founder Sir Richard Branson has revealed.

Branson, who failed in an attempt to acquire beleaguered Northern Rock in October 2007, said: "We are going to get back into the mortgage business and will become a bank either by acquisition or by getting our own banking licence. You will see us become a consumer bank within the next couple of years."

Branson sold Virgin mortgage arm Virgin One to Royal Bank of Scotland in 2003.

It is thought Virgin is keen for the Government to break up RBS, which is 70% state-owned, allowing Branson to buy parts of the bank, and make its move into the High Street.