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Converted Lurker

John Charcol Nearly Went Out Of Business

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Directors at John Charcol have pumped around £1.5m into the company as a temporary measure before a sale or new investment.

The move followed a KPMG audit that warned of material uncertainty which may cast “significant doubt” on the company’s ability to continue as a business.

The audit states that the John Charcol Group incurred a net loss of £519,000 during the year ended December 31 2006.

A director's report, signed on February 8 by director Ian Kennedy, says three of the company's key directors - John Garfield, Jon Moulton and Charles Wishart - put in additional loan funding of £1.5m as an interim measure before either a sale or refinancing involving existing investors.

Each investor provided £500,000, with the funds being received and the stock issued between December 31, 2007 and January 2, 2008.

The directors' report is included with the John Charcol Group accounts for the year ended December 31, 2006.

It shows that £820,000 of loans due to have been repaid in June 2007 have been deferred to April 2008 at the latest.

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Thing is deals are being pulled left, right and centre from the intermidiary market. There are less good rates around generally, and the good rates that are available are being kept in house by the banks. Whereas once you would almost certainly be better off going to a good independent broker it is less clear cut now.

The complete and total demise of sub prime (with high broker fees) has not helped matters either.

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Looks like finger nails scrapping towards the edge of the cliff. If they were loss-making by the end of 2006 it's not likely to have got better since then.

I know they put themselves up for sale last year to no avail, only decent deal I've seen done for ages is former founder of Egg +team buying controlling interest in moneyquest, and Skipton buying up insurance co Torquil Clark, Skipton are so sussed IMHO, very cute operators.

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Oh my god if Charcoal are in trouble, there are going to be a lot of prime brokers going to the wall.

TBH I'm suprised the directors stumped up 1.5mil between them of hard cash, I'll bet it's going in to the Co. in tranches to get over their solvency issues, no point spending good after bad. I know biz is bad for all involved in mortgage industry, problem is if you have a larger operation you have difficulties in scaling it right back down to the wood quickly, you just can't be agile enough.

I reckon the industry will see between a 70-80% loss of earnings in the next twelve months vis a vis 2006-7. Simplistically the money is just not 'out there' to lend. All BS area acting like scrooge, herding their investors cash (and rightly so IMHO). This is where 'the crash' is, mortgage approvals for house purchase have fallen by near half, soon to be 75%

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Directors at John Charcol have pumped around £1.5m into the company as a temporary measure before a sale or new investment.

The move followed a KPMG audit that warned of material uncertainty which may cast “significant doubt” on the company’s ability to continue as a business.

Well, after a Sky News debate, I did tell Ray Boulger, in April 2007, to retire and enjoy all the wealth he's created for himself over the 30 years. He didn't listen...

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Well, after a Sky News debate, I did tell Ray Boulger, in April 2007, to retire and enjoy all the wealth he's created for himself over the 30 years. He didn't listen...

all that wealth and he's just a 'modest employee', in no way liable if J.Charcol goes tits up, clever guy :rolleyes: he'll be much in demand..somewhere...

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Doesn't Ray Boulshit work for Charcol?

This won't exactly do his VI credentials much good for those star appearances on Money Box, will it?

"Hello, I'm Paul Lewis. In today’s programme, the five biggest high street banks ask the Bank of England for help at the end of an extraordinary week on financial markets. Mortgages get tighter and more expensive again. With cash interest rates still high, will you still be able to get a mortgage? Joining me now is Ray Boulger, chief executive of the recently bankrupted mortgage broker John Charcol..."

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Doesn't Ray Boulshit work for Charcol?

This won't exactly do his VI credentials much good for those star appearances on Money Box, will it?

"Hello, I'm Paul Lewis. In today’s programme, the five biggest high street banks ask the Bank of England for help at the end of an extraordinary week on financial markets. Mortgages get tighter and more expensive again. With cash interest rates still high, will you still be able to get a mortgage? Joining me now is Ray Boulger, chief executive of the recently bankrupted mortgage broker John Charcol..."

John Charcol is simply un-salable, only one way for Charcol down down down......... Good ridence. I will never forget when one of the management from the holborn branch called me whilst i was working at a Shropshire data center where Charcols citrix farm sits! What a *****, things are not going there way, so take it out on a productive member of society! way to go bottom feeder estate agent.

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PLEWIS: "Hello, I'm Paul Lewis. In today’s programme, the five biggest high street banks ask the Bank of England for help at the end of an extraordinary week on financial markets. Mortgages get tighter and more expensive again. With cash interest rates still high, will you still be able to get a mortgage? Joining me now is Ray Boulger, chief executive of the recently bankrupted mortgage broker John Charcol..."

---Ray, tell us whats it like out there?

RBOULGER: Well Paul, the computers are mostly saying no right now........

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TBH I'm suprised the directors stumped up 1.5mil between them of hard cash, I'll bet it's going in to the Co. in tranches to get over their solvency issues, no point spending good after bad. I know biz is bad for all involved in mortgage industry, problem is if you have a larger operation you have difficulties in scaling it right back down to the wood quickly, you just can't be agile enough.

I reckon the industry will see between a 70-80% loss of earnings in the next twelve months vis a vis 2006-7. Simplistically the money is just not 'out there' to lend. All BS area acting like scrooge, herding their investors cash (and rightly so IMHO). This is where 'the crash' is, mortgage approvals for house purchase have fallen by near half, soon to be 75%

Probably loans rather than cash - 40% tax relief available. MEW??? :)

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Nationalise it.

We dont want the domino effect to knock out the country's mortgage brokers.

Where will we obtain out Liars loans if there are no brokers.

THIS IS URGENT.

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Nationalise it.

We dont want the domino effect to knock out the country's mortgage brokers.

Where will we obtain out Liars loans if there are no brokers.

THIS IS URGENT.

The Bank of England must intervene.

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Well, after a Sky News debate, I did tell Ray Boulger, in April 2007, to retire and enjoy all the wealth he's created for himself over the 30 years. He didn't listen...

Ray Boulgers prediction .............

Mortgage broker John Charcol predicts that property transactions will fall by 15 per cent in 2008, gross mortgage lending will fall from £360bn to £320bn but house prices will only fall by 2%.

:lol:

Edited by grey shark

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Ray Boulgers prediction .............

Mortgage broker John Charcol predicts that property transactions will fall by 15 per cent in 2008, gross mortgage lending will fall from £360bn to £320bn but house prices will only fall by 2%.

:lol:

Well at least he was saying a fall. Adrian Coles from the BSA was on the other day, basically saying that it was raining blood, that lakes of boiling sulfur were spewing up from the earth's core, that cats and dogs were doing it in the street and that house prices would be stable this year. :lol:

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Ray Boulgers prediction .............

Mortgage broker John Charcol predicts that property transactions will fall by 15 per cent in 2008, gross mortgage lending will fall from £360bn to £320bn but house prices will only fall by 2%.

:lol:

15% :huh:, with mortgage approvals for house purchase down 30-40% yoy already and accelerating!

Edited by Converted Lurker

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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