Virgin Money saw mortgage lending fall 1.1% in Q3 to £56bn, this the company said in its latest trading statement, reflected a ‘disciplined approach to trading to protect overall spreads, as well as the impact of higher redemptions given the rate environment’.

Commenting on the latest figures Virgin Money chief executive David Duffy said: “Our strategy remains on track, with financial performance in line with guidance. We delivered continued growth in deposits and unsecured lending in Q3 and remain focused on developing innovative new products for customers and maintaining good momentum into Q4.

He added: “The acquisition by Nationwide is progressing as anticipated with the recent CMA clearance, and we expect it to complete in the final quarter of the calendar year.”

In May, Virgin Money shareholders voted by an 89% majority to accept the mutual’s takeover offer. Nationwide members do not have a vote on the deal.

The offer was a 38% premium to Virgin Money’s 159.1p closing price on 6 March, the day before the deal was announced.

Nationwide plans to terminate the Virgin brand after four years and will rebrand the bank over the following two years.