SIR Richard Branson's Virgin consortium has been confirmed as the preferred bidder for troubled mortgage bank Northern Rock.

Northern Rock will now enter into detailed talks with a team, led by the Kidlington-based tycoon, which was chosen from a number of suitors vying for the bank.

Northern Rock could be rebranded as Virgin if the offer wins through, but Northern Rock staff would remain in Newcastle.

Virgin's deal will see £1.3bn of funds injected into the group in return for a controlling stake, with plans to pay back £11bn of the estimated £25bn Bank of England loan immediately. Bryan Sanderson, chairman of Northern Rock, said the bid was "very good news for Northern Rock".