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Rough road ahead for mortgage firms, says Malone

Premier Mortgage Services should have a replacement for managing director John Malone by the end of March with Malone set to become chairman.

In an interview with Money Marketing’s Mortgage Brief, Malone says: “We would expect to have somebody probably by the end of the first quarter and, according to circumstances, they would be starting as managing director some time in the second quarter.”

Malone believes this year will be a bumpy time for the mortgage industry and says while he does not expect to see another Northern Rock, specialist lenders, in particular, will have a tougher time. He expects to see rising levels of redundancies across the industry, in broking as well as lending, and says smaller mortgage clubs and networks will find it difficult to survive a downturn in trading volumes.

Malone says: “If the number of purchases, as many of us are suggesting, from one and a quarter million to possibly less than a million purchases, then obviously fewer transactions mean less income and that will have an impact, whether the firm is a network or mortgage club. I think that by this time next year there will be fewer network-type players.”

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