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While intermediaries were confident the move would not impinge their ability to advise from the whole of market there was apprehension on what impact it would have on customer choice.

Rob Clifford, chief executive of Derby-based adviser Mortgageforce, said "It does not get in the way of impartiality at all in that intermediaries have to demonstrate to their clients and the regulator that operating in an impartial fashion.

"But of course any consolidation between lenders threatens to reduce consumer choice."

Melanie Bien, director of London-based adviser Savills Private Finance, said: "Obviously an adviser will still be operating from a position of independence it just means less choice available.

"Both of them were big brands for advisers. The fact that one has effectively been knocked out of the equation will mean there is less choice and that is obviously going to be detrimental for the customer."

Rob Downham, managing director of Sheffield-based adviser Simpligroup, said: "The fact that Gordon Brown had to step in and stop the monopolies and mergers commission from looking at this signifies exactly that is taking place.

"They would have said it is reducing choice for the client and therefore from an advisers point of view the choice we can give to our clients in the marketplace."

Henry Ejdelbaum, managing director of London-based independent business finance consultants ASC Finance for Business, said: "They now have such a large market share that competition will be reduced, resulting in higher mortgage costs and lower service levels."