Barclays is to buy ING Direct UK after the Dutch group seeks to repay bailout loans taken during the European financial crisis.

The deal is expected to be confirmed in the second quarter of 2013 and would see Barclays acquire 1.5 million customers from the deal and increase its mortgage holdings by £5.6 billion.

Ashok Vaswani, head of Barclays retail and business banking arm in the UK, said: "We intend to maintain the high standard of service and honour the existing terms and conditions have experienced with ING Direct UK."