The banks reached a deal in June, which was approved by shareholders in September, with the terms now agreed by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

Shares to Virgin Money – which scooped five awards at the 21st annual YourMoney.com Awards this summer  – are set to be issued by October 15. This will mean shareholders own approximately 38% of the combined group.

After the merger is complete, CYBG is expected to have just over 5% of the UK mortgage market.

The banks previously said the majority of Virgin Money mortgages will be migrated to CYBG platforms on renewal.

CYBG chief executive David Duffy previously said the merger would mean the bank is better equipped to take on the large market incumbents.

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He said: “Together we will serve around six million customers, with the scale, capabilities and financial muscle to disrupt the status quo – and with a clear ambition to provide our customers with the best service in the UK.”