Flowers plans to bloom with £1.5bn

American private equity firm JC Flowers has set aside a £1.5 billion “war chest” to buy mortgage books from British banks after its attempt to acquire Northern Rock was foiled by Sir Richard Branson’s Virgin Money.

The firm is understood to be in talks with a number of high street lenders keen to off-load mortgages in an effort to free up capital.

Any assets acquired would be transferred to the firm’s OneSavings Bank, which was formed by its acquisition of the Kent Reliance Building Society last year.