Many analysts believe Virgin Money stands a serious chance of winning control of Northern Rock - although Sir Richard Branson should be wary of counting his chickens before they are hatched, especially with other bidders in the frame.
Should you take this opportunity to look elsewhere before the companies seal their deal?
The bidding process for Northern Rock was supposed to last until February 2008. But after initial suggestions that the Government was willing to bring this embarrassing issue to a halt as soon as possible, it now seems to want a full bidding war for the stricken bank.
There are contrasting views as to whether the potential Virgin takeover is good or bad news for investors at Northern Rock - some believe it to be a sensible deal with few viable alternatives; while others, including key shareholder RAB Capital, feel the company is being massively undervalued.
RAB bought more than a 6% stake in the company in September when shares were sent tumbling - however, its hopes of making a substantial profit now appear to be disappearing.
Of course, it isn't clear whether Virgin will succeed. Last week, a counter-bid by former Abbey chief executive Luqman Arnold was also seen by many, including the Treasury, as a credible contender.
Mr Arnold's offer involves his Olivant group taking a 15% stake in the Rock, nursing the company back to health and then selling the stake on.
From a consumer perspective, Sir Richard Branson and his consortium are attempting to make all the right noises.
Mr Branson released an open letter to customers last week in which he promised to safeguard their savings, install top-quality management and generally keep the business intact.
It is likely to mean the end of the Northern Rock name however, with the company to be re-branded as Virgin Money to shake off the bad memories and win back customers who have been withdrawing their money, currently at a rate of £200m a day.
In many respects, for current Northern Rock customers a Virgin takeover will bring welcome peace of mind - removing the threat of administration and offering some stability going forward.
Nevertheless, it may take some time before new customers consider the brand a viable option again - but the company is already taking strides to compete once more.
In the savings sector, the Northern Rock Tracker Online savings account offers 6.31% AER - making it one of the leading rates available.
It may not be at the top of the table for rate through our savings comparison tool, but it is highly competitive. As a consequence many customers will be happy to hang tight and see what transpires from the Virgin deal, while others may wish to look into 'safer' options, such as the market-leading rates on offer from ICICI HiSave at 6.41% AER and the Alliance & Leicester eSaver (6.5%).
From a borrowers' perspective, I'd suggest that a Virgin takeover should only bring good news.
Virgin has wanted to re-enter the mortgage market for some time and has positioned Jayne Anne Gadhia and former Lloyds TSB chairman Sir Brian Pitman as the key figures in its bid. Pitman is once more expected to take the role of chairman, while Gadhia has a strong reputation with Virgin One, the offset account originally backed and subsequently bought by Royal Bank of Scotland.
By completing a takeover, Virgin will have an instant presence in the mortgage market and will want to become one of the most competitive lenders around as it battles to establish its name.
Of course, there is still a chance that the Virgin bid could be stymied by rival offers or that the Northern Rock brand could be thrown into administration. So if you're searching for peace of mind you might still want to shop around using our mortgage comparison tool and capitalise on the leading rates available elsewhere.
While there are no guarantees that the Virgin bid will be accepted, it seems that a decision is looming, bringing a swift conclusion to one of the most remarkable financial stories of 2007 - and some much-needed clarity for consumers and investors alike.
DISCLAIMER: Please note that any rates or deals mentioned in this article applied at the time of writing and may no longer be available/applicable today.
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