Lloyds Banking Group has today announced plans to buy MBNA in a deal that would see it control over a quarter of the UK credit card market - but the banking giant has vowed there will be "no immediate impact" for customers of either firm.

Bank of America-owned MBNA has 2.5 million UK cardholders, all of whom have been advised by Lloyds to "continue to manage their accounts as usual".

While confirming there will be no immediate changes and that the MBNA brand will remain distinct and competitive, neither MBNA nor Lloyds provided any detail on how customers or products might be affected further down the line.

Once examined by regulators the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA), the deal - worth 1.9 billion - is expected to be completed by June 2017.

Lloyds Banking Group already owns Lloyds, Halifax and Bank of Scotland, with all three brands already marketing their own competing credit cards.

Though the deal will boost its credit card market share from 15% to 26%, Lloyds Banking Group says MBNA will be "maintained as a challenger brand" and will "compete with all other card providers".

The announcement comes days after the Government sold off more shares in part-nationalised Lloyds, taking the public's stake down to less than 7%. The business is expected to be fully privatised by early 2017.

Check out our 0% Credit Cards guide for the best options for interest-free spending.

Additional reporting by the Press Association.

Martin Lewis
Get Our Free Money Tips Email!

Have your say