Under the terms of the deal, all John Charcol staff and directors will be making the move to Towergate Financial.
Towergate Financial says a “key element” of its growth strategy is to establish a mortgage broking proposition alongside its private client and corporate solutions businesses.
Towergate chief executive Ian Darby (pictured) is former chairman of John Charcol and spent 16 years at the broker before taking up a number of executive roles at Bradford & Bingley. He will work alongside current John Charcol chief executive John Garfield in the new business.
Darby says: “We believe there is an excellent fit between our business and John Charcol.”
Garfield says: “Joining forces with the team at Towergate Financial will provide our business and people excellent opportunities to work with Towergate’s businesses to our mutual benefit and to thrive in what is a very exciting time for the mortgage market.
“John Charcol has an incredibly strong brand in the mortgage market built over many years, based on top quality advisers and great advice. We jointly have a great opportunity to offer financial planning and insurance solutions to Charcol’s clients and vice versa.”
According to its last annual accounts, John Charcol had £7m in debts and three of its directors pumped more than £5m into the business.