Charcol allies with financial adviser

Two of the best known players in independent financial services yesterday announced a "strategic alliance" - but denied the move was a precursor to a merger.

John Charcol, the mortgage broker, and Hargreaves Lansdown, Britain's biggest privately-owned independent financial adviser, said they were linking up to allow their customers access to a full range of financial products.

Hargreaves Lansdown will introduce mortgage business to John Charcol, and John Charcol will pass on investment and pensions business to Hargreaves Lansdown.

The alliance comes ahead of controversial new rules which come into force in April next year allowing pension investors to gain 40% tax relief when they invest in property through a "self-invested personal pension" (Sipp).

Some experts have predicted the new rules will trigger a renewed rush into buy-to-let, and there have been several tie-ups between property companies and financial advisers in preparation for the change.

There have been reports that people are already buying properties to put into their pensions next year.

The two firms said that, between them, they would provide specialist mortgage and pension advice, as well as access to Sipp plans.

Mark Dampier, director at Bristol-based Hargreaves Lansdown, said: "This decision sees the coming together of two of the leading brands in financial services."

London-based John Charcol was sold by mortgage bank Bradford & Bingley last year. Peter Barrett, the broker's managing director, said it believed the partnership "does not damage either of our independent propositions".