The announcement was made on the first working day of mortgage regulation and no indication of the price paid was given.
The previous majority shareholder in the lender, Nikko Principal Investments said it had sold its entire holding to Merrill Lynch & Co.
Mortgages plc will retain its name and continue to operate as a wholly-owned subsidiary of Merrill Lynch.
Mortgages plc group chief executive officer Trevor Pothecary said: “This announcement is great news for Mortgages plc and confirms our position as one of the UK’s leading non-conforming mortgage lenders.
“The directors, management and staff of Mortgages plc are all delighted with this deal and are excited about the prospects it brings for the future.”
Trevor Pothecary concluded: “This announcement will have positive impact on the products and services we are currently marketing and puts the Mortgages plc Group in a very strong position to increase its presence in the dynamic UK residential mortgage market.”
Commenting on the announcement Bill Warren, network director at the Complete Network, said: “It is interesting that the announcement was timed for Monday.
“Perhaps they were waiting for the FSA to approve the deal and to ensure that the regulatory change over went smoothly.”
Warren said the announcement could also have been timed so as to bury it amid all the other ‘Mortgage Day’ news.
Mortgages plc has also announced that it has developed a series of branded KFIs for its range of branded lending partners.
Tony Jones, managing director of Pink Home Loans welcomed the development.
He said: “Having our own branded KFI is a useful additional service from Mortgages plc. Especially at a time when some lenders are struggling to even generate their own documentation.”
