According to a recent report the well known broker, John Charcol, could be facing immense future difficulties, which could see it losing the ability to continue operating. The broker’s own auditor has warned the firm that it faces ‘material uncertainty’ over its future. This comes at a time when many lenders and brokers in the mortgage industry are suffering real problems as the result of the global credit crunch, which has been wreaking havoc across the UK since last summer.

The report goes on to state that the auditor figures show that the brokerage firm’s liabilities are well over half a million pounds more than its assets. The company has £820,000 worth of deferred loans, and following the report officials from the company insisted that the firm was not facing problems. However, the report did claim that officials from the brokerage firm were deciding whether they would opt for a takeover offer or whether the firm would refinance operations in the future.

The chief executive of the firm confirmed that there had been some takeover offers that were being considered, but he did not say whether the deferred loans amounting to £820,000 would be paid off by the deadline, which is this month. In fact, he also went as far as to say that business was thriving in terms of the number of customers seeking advice and assistance, as more and more consumers were turning to brokers as a result of the credit crunch.

It is not just broker firms that have been adversely affected by the credit crunch, as many lenders have had to restrict lending operations and cut back on the number of products available. This is due to problems with raising the funds required to finance their lending operations to the same levels as in the past.

Recent additions:

• Financial difficulties loom for homeowners
• Interest rates on personal loans continue to rise
• Loans market still suffering due to credit crunch
• Avoiding risks with an unsecured personal loan

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