The chief executive of one of the UK's biggest brokers is set to be shown the door by the end of the week as the slowdown in the mortgage sector worsens.

John Charcol is expected to announce that Ian Kennedy will leave, following a turbulent round of job losses at the mortgage broker. It is understood that while talks about Mr Kennedy's future are ongoing, a formal decision is likely within days.

The company has been undergoing a strategic review after an attempted £50 million sale fell through at the beginning of the year. It began a restructuring process that prompted the recent job losses after co-founders John Garfield and Charles Wishart bought a 15 per cent stake back from Advantage Capital, the private equity group, almost a month ago.

Garfield and Wishart were forced to invest £1.5 million in the business in March after KPMG warned that Charcol was in danger of running out of cash. Garfield, chairman and former chief executive, is expected to resume his role as chief executive following Mr Kennedy's exit.

The anticipated departure comes amid a decline in the broking industry as a result of the credit crunch. The number of mortgage advisers has fallen from about 30,000 to 26,000 since last year, according to the Association of Mortgage Intermediaries.

Net mortgage lending is expected to halve this year, according to the Council of Mortgage Lenders. Meanwhile banks have been starving brokers of the best mortgage rates to keep unwanted business at bay because they are struggling to fund deals. It is expected that this policy could shrink broker numbers by a further 10 per cent.

Mr Kennedy joined John Charcol in October 2006, following a directorship at Liverpool Victoria, the mutual insurer.