from the broker market, undoubtedly reduce costs in the overall acquisition of customers and grow their back book further. It appears to “fly” in the face of Consumer Duty, where we could see the real return of dual pricing, dual affordability models, I think Seb Murphy of the JLM Partnership put it so well in an article in Mortgage Solutions by saying, “it’s about nudging customers down the path that costs lenders less. The danger is obvious: a twotier market in which advised borrowers are penalised on price and non-advised borrowers are left without protection”. “Paradigm has always championed the independent mortgage broker and, given that the Mortgage Rule Review consultation response deadline was only a matter of weeks ago, we share the disappointment voiced by Association of Mortgage Intermediaries (AMI) that the FCA has chosen to press ahead with their proposals, and at such a pace. We have previously voiced our concern that this change carries the potential for consumer detriment and poor outcomes and we maintain that position, but at the same time we also expect strong ongoing support for the intermediary channel from lenders. Finally, the new rules are optional, not mandatory. Lenders will need to assess how and when to apply them, including updating systems, training staff, and ensuring compliance with the Consumer Duty. If you would like to read more on this subject our policy team at Paradigm consulting have produced an excellent synopsis at Regulatory Updates “Mortgage Rule Review: First steps to simplify our rules and increase flexibility”. Here at Paradigm we have for the last few months given real consideration to AI and its potential impact on ours/your business. It’s a huge cliché to say technology is reshaping the mortgage experience, but having spent time with lenders and in my own reading on the subject of AI one can’t 07 MORTGAGE NEWSLETTER help but be left with the feeling this is the real “gamechanger” not just for our market but for society as a whole. Whilst we at Paradigm have sought to understand AI in great detail, we would also like to know what you are thinking of this area. We have created a survey to gauge your thoughts.* It will take 10 minutes maximum and gives you the chance to tell us what you think, and maybe what you need in this regard to help your overall understanding for your business. It would be great if you can find the time to complete it as we will use your feedback to assess how we can help inform and educate further given it is not going away. In addition we are working to offer some free tools to help you look at your business with technology in mind by assessing your marketing capability now and in the future so please look out for this! Consumer expectations have shifted dramatically, particularly among younger buyers. The expectation of real-time updates, seamless applications, and instant decisions is now standard. The winners in the next phase of the mortgage market will be those who combine competitive pricing with superior digital infrastructure and human-centric advice. Here at Paradigm we remain cautiously optimistic for the end of the year, our recent performance in applications and completions has seen us post some record returns, so thank you it is down to you our advisers and your teams we are able to do this. Obviously, challenges abound but please be assured we are on the front foot to understand them and turn them into opportunities. Whether you're navigating the challenges of today or preparing for the market of tomorrow, we’ll be here to provide the insights, data, and analysis you need to stay ahead. Talking of opportunities, this quarters edition has some great insights from our contributors which I am sure will help you in your business and as always our thanks go to them for their sponsorship. * Survey Closes on 1st October
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