NORTHERN Rock’s executive chairman said Virgin Money’s deal to buy the bank ended years of uncertainty for its staff.

Ron Sandler, who took the helm at the Newcastle lender following its nationalisation in 2008 and stepped back into the role a year ago when chief executive Gary Hoffman left, said staff had openly welcomed yesterday’s announcement.

Over the past four years, about 3,000 staff have left the bank, with the most recent tranche of 680 job cuts, announced in March, close to completion.

But yesterday Virgin Money pledged there would be no compulsory redundancies for at least three years.

And despite “good bank”

Northern Rock plc announcing an underlying loss of £78.8m in the first six months of this year, in line with expectations, this was compared to a loss of £140m in the first half of last year and, in August, Mr Sandler said he expected the bank to be trading profitably again in the second half of next year.

Last night, Mr Sandler, who will leave his role when the deal is concluded, probably by the end of the year, to be replaced by Virgin Money chief executive Jayne- Anne Gadhia, said: “Our colleagues were cheering when they heard the news. It was the ending of all these years of uncertainty.

“The business now has very good growth prospects for the future and staff are excited at the prospect of being part of a growing thriving business.”

Mr Sandler also played down his part in steering Rock to the point where it could be sold, adding: “The real credit for having got to this point is with the workforce, which has shown enormous resilience and courage. The fact it is in good health is a credit to the people who work here.”

Despite taking over in difficult circumstances, the City troubleshooter had no regrets. He said: “This has been an enormously satisfying part of my career.”

Brian Cole, regional officer for the union Unite, which represents staff at the bank’s headquarters, said: “We are over the moon. The union reps on site think it is the best possible outcome.

The fact the business is staying here and, not just that, but that Gosforth is going to be the hub, is fantastic.”

Chancellor George Osborne said: “It was clear to us that this was the best deal for the British taxpayer, we were getting more money back than any other deal on the table,” he said.

Chi Onwurah, MP for Newcastle Central, said: “Their chief executive has written to me to say they have great respect for the heritage and community focus of Northern Rock.”

Newcastle City Council leader Nick Forbes said: “The decision by Virgin Money to make Newcastle their home sends a message of confidence in our city and the wider North-East.”

James Ramsbotham, chief executive of North East Chamber of Commerce, said: “The announcement that Northern Rock is returning to private sector ownership is a significant milestone.”