Finally, the market seems to have returned to a period of normality. Brokers appear to have arisen out of their New Year stupor and are back, firing on all cylinders. Lender products are being churned out to market and trade bodies are commenting on consultations and policies. A busy mortgage sector – that is what we like to see.

One of the more surprising stories of last week was regarding one of the well known mortgage broker firms in the sector. John Charcol announced it is looking at a possible sale, or at least future ownership options, as the press release phrases it, having appointed an investment bank to look at the ‘expressions of interest in the business from third parties’ that have been appearing.

John Charcol is a well-known brand, but it has also been a bit of a head-scratcher to many of us. Never a controversial name in itself – although the prolific Mr Boulger has certainly been accused of being contentious – it is well known among the British public. It has also been one of the chosen training grounds for many brokers who have now gone their own way.

There has been some surprise about the timing of this announcement from commentators and former John Charcol employees. Although it has long been on the cards for a suitor to come along and sweep the broker firm off its feet, it seems peculiar that it would seek advice on a possible acquisition now. There are not many in the market who would currently be willing to spend a sizeable amount of money on any proposition in the mortgage sector, following the rocky end to 2007 and the bleak predictions for the rest of 2008.

If the rumours are true, a successful acquisition is likely to cost up to £50m. If further speculation is to be believed, BNP Paribas and its Spanish counterpart BBVA are potential bidders for the broker firm. I would personally be surprised if we ended up seeing a takeover by another British bank. Many of us recall its relationship with Bradford & Bingley (B&B), and how sour it became towards the end. Remember, B&B paid over £100m for the business back in 2002. It almost certainly did not get that back.

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What does this mean for John Charcol? Set up in 1974, it provides its customers the option to transact face-to-face, by phone or online. Declining an offer to join, or left out of the Concordia deal in 2006, there were rumours that it would instead attempt to strengthen its telephone operations and create a proposition more in line with the success story of L&C – this has never been confirmed. But the fact that it entered a deal with price comparison firm Uswitch.com fuelled further speculation of where its interests truly lie.

It is a business that is in a position to diversify. It has an untarnished brand among customers and a well respected team. But until John Charcol itself provides some clarity on what kind of business it wants to be, it will leave itself open to further rumour and speculation until the appropriate suitor is found. n