The Edinburgh-based bank, has taken in almost £2bn in deposits from over 170,000 savings customers since it opened a year ago.

Managing Director of Standard Life Bank, Jim Spowart, said: "We have already seen encouraging interest in our new mortgage and in our plans for expansion within the mortgage market.

"We expect many borrowers to take their mortgage with us because they trust we will deliver what we promise - highly competitive products that are fully flexible, fair, fast and transparent."

New mortgage centre opens

Scottish Secretary, Donald Dewar, praised the success of Standard Life when he officially opened the bank's new mortgage centre.

He said: "Although still very much in its infancy, Standard Life Bank is already a remarkable success story.

"In its first year of operation it has surpassed all expectations, from the amount of savings deposited with it, to the number of jobs it has created.

"This latest venture into mortgages will help build on these achievements."

Mr Dewar added: "The new mortgage centre in Edinburgh will employ up to 300 staff, with around 200 in place from day one.