The bank, chaired by ex-Kensington chairman Peter Birch, has been waiting for the FSA to give it the go-ahead since September 2009. Earlier this year it said it hoped to get approval in the second quarter, putting it just ahead of schedule.
Others believed to be involved in the bank include chief executive Stuart Sinclair, the ex-boss of Tesco Personal Finance, chief operating officer Barry Meeks, formerly chief executive of Pink Home Loans and Home Loan Management, and John Goodfellow, the former chief executive of Skipton.
Martin Finegold, founder of Kensington and ex-chief executive of Trigold, is also been rumoured to be on board.
The bank has reportedly raised £250m from investors including Finegold’s hedge fund Cambridge Place, the wealthy Pears family and private equity firm Blackstone.
It aims to sell simple savings and mortgage products once up and running.
No-one was available for comment from Home & Savings Bank and the FSA said it did not comment on individual firms.
But one industry insider and mortgage thought leader said:"I've got it on good authority that this is happening. They're good guys at H&SB and it's taken a long time but they've finally got there. This is fantastic news for the mortgage market."
