The companies will continue to operate as individual businesses, maintaining the brand and managerial structures.
It was claimed that customers and appointed representatives of Pink and BDS would see little change to their working relationships.
The arrangement has seen Barry Meeks become the chief executive of the combined group, while David Copland will be managing director of Pink Home Loans.
Phil Jay will remain as BDS’ managing director, as Ian Nelson steps back from direct involvement to a non-executive director position.
Meeks said: “It has been no secret that Pink has been ambitious in the targets it has set itself to become one of the largest mortgage networks in the UK and to significantly increase our product distribution capability.
"Our investment in a brand as strong as BDS demonstrates to the market the seriousness of our ambitions.”
Jay commented: “The ability to be in a position to call upon additional resources and expertise in what is a rapidly changing industry will give BDS an extremely advantageous position of strength.”
Mark Chilton, chief executive of Homeowners Mortgage, said: “It’s inevitable that we will see consolidation. Right across the financial distribution sectors, people are under financial pressure.
"BDS is fundamentally a good business, but in common with others, it has been badly affected by the credit crisis. We will see bigger and well financed companies furthering their distribution through acquisition.”
