John Charcol goes up for sale as bidders circle

(Update) Mortgage broker John Charcol has been put up for sale by its private-equity backers, with a price tag thought to be about £50 million.

The company has appointed Gleacher Shacklock, the investment bank, to review its financing and ownership options. An information memorandum is to be sent to prospective bidders in the next two weeks.

The broker has received several approaches in recent months, as concerns mount about prospects for the UK mortgage market in the wake of the credit crunch.

Ian Kennedy, chief executive of John Charcol, said: 'Recent approaches have prompted us to review the future ownership and financing arrangements for John Charcol. Our business is unique and we have built a strong market position. We are well positioned for the considerable growth which we expect from the increased demand by consumers and distribution partners for our services in tougher markets.'

Kennedy said the firm had seen early signs of a 'flight to quality' following the Northern Rock crisis with enquiries and applications up 30% on a year ago.

Jon Moulton, one of the UK's best known private-equity investors who heads Alchemy Partners, and Advantage Capital, the buy-out fund, are leading shareholders in Charcol which is 25% owned by employees.

Charcol has had a varied corporate history in recent years, and was owned by Bradford & Bingley before being taken private again.