Towergate Financial rescues John Charcol from administration

Towergate Financial bought John Charcol last night after it went into administration.  

Towergate Financial put together a bid last night after being approached by administrator Grant Thornton. Towergate Financial chief executive Ian Darby revealed that John Charcol's director first approached the firm as a buyer eight days ago.

The advice arm of Towergate Partnership will take on all John Charcol staff and customers but not all its liabilities.

John Charcol was put into administration by its directors after they struggled to cut costs to cope with a dwindling mortgage market, said Darby. ‘This opportunity came to us at very short notice,’ he said. ‘We now own a market leading brand that fits well in our family.’ 

Towergate Financial chief executive Ian Darby talking about the acquisition of John Charcol (2.09 minutes)

The deal will almost certainly lead to John Charcol breaking its single-tie protection relationship with Legal & General but advisers will continue to offer independent mortgage advice.

Towergate Financial said a high-net-worth mortgage arm would complement its private client and corporate advice work. 

John Charcol advisers and staff were vital for making the business a success, said Darby. ‘We believe there is an excellent fit between our business and John Charcol. We jointly have a great opportunity to offer financial planning and insurance solutions to Charcol's clients and vice versa,' he said.

Towergate Partnership chairman Peter Cullum (pictured above) said the deal would bring 100 new staff under the umbrella and safeguard the John Charcol brand.