PARADIGM MORTGAGE NEWSLETTER WINTER 2025 www.paradigm.co.uk/mortgages
CONTENTS 4 Paradigm Mortgage Services Introduction from Paradigm Richard Howes 8 AIR Unlock your Potential with Air 10 More2Life Shaping the Future of Later Life Lending: What Horizon’s Arrival Means for Advisers and Their Clients 12 Market Harborough Building Society Later life lending: Why Advisers need a Lender that listens 14 Paradigm FCA Speech that gives an insight into future plans Graeme Stewart 17 Paradigm As BBC Scam Safe Week Shines a Spotlight on Fraud, Trustees are Urged to Step up and Make the Pledge Graeme Stewart 18 Paradigm Mortgage Services Paradigm's Mission to Get Advisers AI-Fit! Aimee Carnwath 16 Paradigm Strengthening Security with Multi-Factor Authentication Head of IT
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Hello, and welcome to the final edition for 2025 of our Newsletter. I will start by saying a heartfelt thank you to everyone either directly or involved in Paradigm Mortgage services. From our financial results covering April 2025 to September 2025 we have produced some record results. Lending applications through Paradigm were up over 40% year-on-year in the first half of the year, completions up 30%, and our lending (excluding PTs) was up around 18% against an estimated wider market growth of just 2%. So we’re outperforming the market which I think tells you two things. First, you our member firms are clearly active and using Paradigm. Second, we believe we have a strong handle on what is going on across the different lender types, because we are seeing a lot of live cases from a lot of firms and our overall proposition is in the main working for and with you our partners. Its been a busy year at Paradigm towers we have done our best to bring not only a proposition that has merit, but ideas and innovations that can help shape your thinking in a variety of areas. Recently we have focused on AI as many are doing, but we have sought your views with the first DA survey on this area, followed it up with an educational video with the OSB group and their Chief Risk Officer to look at the positives and negatives for your business with AI, and then launched the first LLM/AI marketing tool to allow you to assess your business’ capabilities now and potentially for the future using AI. In addition with the recent news from Lloyds Banking group on their Proc fees, where they have reduced the amount paid on Product Transfers we have a calculator in order you can assess the potential drop in income their decision means for you in order you make plans to “close the gap”. Hopefully, you will agree these are practical examples to help you make decisions that will affect your business moving forward. All of these ideas can be found on our website. In terms of the market, whilst the budget did its best to flatten any enthusiasm, and activity, the overall optics are positive for 2025 in terms of house price growth, the overall number of property transactions, lenders are predicting a market size of circa £285Billion, with a Re-finance opportunity at a staggering £427Billion. The EY ITEM Club expects mortgage lending to grow by just over 3% next year, easing back to just under 3% in 2026, and then settle at around 2.7% in 2027. So the broad view is steady growth. If we look further ahead, the Office for Budget Responsibility expects the average UK house price to rise from £260k to £305k by 2030. It also expects the number of property transactions to increase from around 1.1 million a year now to about 1.3 million by 2029. On supply, the OBR thinks the housing stock will grow by around three hundred and five thousand new homes a year by Richard Howes Director of Mortgages Paradigm Mortgage Market Update 04 MORTGAGE NEWSLETTER
2029 to 2030, which would be a marked rise on recent delivery. Clearly this will determine whether the Government makes its 1.5 million new home target in this Parliament. And on mortgage pricing, the OBR expects the average mortgage interest rate across the stock of loans to rise from about 3.7% in 2024 to around 5% by 2029. That is interesting in itself, because rates of course have been coming down, but nowhere near the level we saw in the post-pandemic market. Put together, this paints a picture of a steady market. Not a sudden upswing, not a downturn, but a market with real volume and with long-term demand still in place. The question is not whether the business is there, it is who controls it. Despite this “rosy” picture there are some potential headwinds for 2026, I think it is clear some lenders have pushed the FCA hard, and will continue to do so, for more freedom to deal with customers regardless of where they have originated from. The removal of the advice interaction trigger for existing borrowers is proof they have been successful. That rule signposted consumers to advisers, it has now gone. The FCA’s recent Discussion Paper also talks at length about more direct contact with consumers. It gives the impression that AI-driven mortgage journeys are acceptable, as long as the outcome looks reasonable. At the same time, we are seeing more direct targeting from the big lenders. Emails, letters and texts are going out to existing borrowers well ahead of renewal dates. These messages do not mention advice. They do not mention the adviser who placed the original loan. Banking apps are an even bigger issue. They let lenders push product offers straight to customers’ phones, with no reference to advice at all. A client can accept a deal in seconds before you even know the renewal window has opened. 05 MORTGAGE NEWSLETTER Continued on next page... We are also seeing a widening of dual pricing. Some direct or selected routes now offer sharper rates that advisers cannot access, and we should be clear: this will not fade away. The largest lenders want to keep more margin in-house. They see adviser commission as a huge cost. They are already changing their behaviour to pay less and keep more control. That is why early contact with your clients, and strong support from Paradigm is so important. Christine Newell our Technical Director and I were talking recently about the value of Paradigm to our broker partners, I have para-phrased her response here but I thought it might be of interest, and also demonstrate how we want to work with and for you in order you can compete in 2026. “It's sometimes really difficult to convey to an audience the value of Paradigm and how we can and will support you. Yes we can wax lyrical about what we do and the business proposition. These are all good things but they are a list of ingredients, to understand what they taste like you have to try us out when you have a commercial opportunity or issue. We listen to you and have done from the conception of Paradigm in 2007 to now. Our Building Society hub came from a broker suggestion. If you think something would be good and help you build your businesses then tell us. When you have a big problem we sit with you and draw on our industry relationships to get the right outcome for you and your clients. You can ring any of the senior team here, we don't have any airs or graces above our station Your success is our success. Cliche yes! But working to that principle has stood us out from the crowd and eventually led us to your door”. There have been some interesting developments in terms of the Bank of England looking at the financial viability of Protection providers and Private Equity firms which I think merits visibility and thought in your thinking. Clearly we need institutions that lend money and provide assurance in terms of cover to be robust
06 MORTGAGE NEWSLETTER from $3tn of assets to $11tn in a decade, the Bank said. Hopefully the results will be positive as there could be impact on the overall lending market as well as the specialist market if lenders do not or currently cannot meet the tests required. To sign off from this newsletter there is still plenty of business out there. The work has not gone away. Clients need advice more than ever. There is a complexity to the market and to client wants and needs, that only advisers can break through. Clients are coming off deals at all points in the year. Whether products taken when rates were much lower or indeed higher, and they want someone they trust to talk them through their options. For example, you can help mitigate the rate pain for those coming off five-year deals, and cut costs for those coming off two-year products. As an adviser, you have a lot of choice in the market. There are many lenders, many products, and more routes to place a case than we have seen for some time. Lenders will lend. They have the funds. They want the volume. They want to keep existing customers and bring in new ones. So the opportunity is there. If you stay close to those clients and bake that into your business model – with help on data, tools, and contacts – there is plenty of good business to be written. Paradigm are here to help you do that: to give you access, to give you information, to help you make sense of lender behaviour, and to be on your side when you need a voice in the room. I hope you enjoy reading this newsletter, my thanks to the other contributors and have a great Christmas and a happy new year, see you on the other side! and strong we cannot go back to the days of 2007 and the “wild west” of lending. The great news is “Britain’s largest life insurers have passed a key stress test from the Bank of England amid fears a shadow banking bubble could leave them vulnerable to a market crash. The 11 insurers, were given a clean bill of health by the watchdog after being tested with an imagined market meltdown that wiped out almost £9bn of their capital. According to the Bank of England, even if billions of bonds were downgraded to junk and the stock market crashed, they would still hold 154pc of the regulated amount of capital required in a crisis – down from 185pc before the hypothetical crunch. “All firms continue to meet their regulatory capital requirements, underscoring the sector’s robust starting position and ability to absorb significant shocks of the kind tested in the exercise,” the Bank said. The second area of interest is The Bank of England has launched a stress test for the shadow banking industry amid warnings of “cockroaches” lurking in the $11tn (£8.2tn) market. Major financial groups, including KKR, Blackstone, Apollo and Goldman Sachs Asset Management, have all signed up for the new stress test. They will be subject to a hypothetical global economic and financial crisis to study the potential impact on the UK, its financial system and the wider economy. The system-wide exploratory exercise (SWES) will take place next year and report its full conclusions in 2027. The decision to subject private equity investors to the same kind of rigorous tests as banks follows enormous growth in the private credit industry, which is often referred to as shadow banking. Private equity and private credit have expanded
PARADIGM'S JOIN US IN SUPPORTING THE TRUSSELL TRUST TO HELP FIGHT HUNGER THIS CHRISTMASTIME REVERSE ADVENT This Christmas, we will once again be giving back to those who need it most. Following the success of this initiative last year, we know we can make a difference through financial donations or by donating food supplies to local foodbanks. We will be encouraging you to consider making a donation or to do your own Reverse Advent calendar, which works by (if you’re able) adding an item to a box or bag every day with items of food, which can then be taken to a food bank to help those less fortunate that are struggling at Christmastime. We are supporting The Trussell Trust, the only nationwide network of foodbanks providing emergency food and support to people in crisis. CLICK HERE TO DONATE
By Air Marketing Team Are your clients over 50? With over £3.7 trillion in property wealth held by the over-50s (JUST, 2025) and 60% of residential mortgages now extending into retirement, the later life lending market represents one of the biggest growth opportunities in financial services. Yet navigating this space can be challenging, with evolving regulation, complex product variations, and the need for the right tools and structured support, that’s where Air comes in! Air is the UK’s leading and award-winning platform and club, built to help advisers unlock opportunities with their over 50s clients. Whether you’re a later life lending specialist already or exploring these products for the first time, Air provides the community connection, tools and expert support you need to seize the opportunity. Unlock value with the Air Club community The later life market is evolving quickly but you don’t need to navigate it alone. Air Club, our free membership community of more than 10,000 members, is designed to support advisers at every stage of their journey. As a member, you gain access to: • A community of specialists, supporting you to build relationships, share expertise and grow your prospect pipeline • Exclusive market insights, including trends, product developments and regulatory updates • Lead-generation resources, from clientfriendly materials to adviser-ready templates • Tools and industry-leading sourcing technology • An LIBF-accredited education programme For advisers not currently operating in the later life space, Air Club offers the ideal pathway into the market. For those already advising on lifetime mortgages, Air Club ensures you remain equipped with the tools, support and regulatory awareness needed to succeed in a fast-changing environment. Where does the latest budget come in? Recent UK budget announcements - including proposed changes to pension treatment under IHT, continued freezes to income tax and IHT thresholds, and potential property-based taxes such as a mansion tax, have significantly changed the tax and inheritance planning landscape. These shifts put pressure on older homeowners to think carefully about how they use their housing wealth. For many clients, their home is their largest single asset. These tax changes, combined with rising living costs and economic uncertainty, are pushing more over-50s toward flexible, later life lending solutions. As demand for borrowing among older homeowners rises, advisers have a growing duty to ensure clients are aware of all their options. Indeed, recent industry reporting shows borrowing by older homeowners is climbing rapidly. In Q3 2025, new loans to older borrowers rose sharply - both in number and value, underscoring a strong shift toward later life lending across the UK. In this environment, being able to offer your customers a wider range of options could be critical for their future financial wellbeing. And so, having access to a specialist platform, a supportive community and ongoing training is essential. 08 MORTGAGE NEWSLETTER Unlock your Potential with Air
The Air Navigator tool: supporting better outcomes Air Navigator tool is designed to be the first step in understanding your clients’ financial needs helping to build a clear, holistic picture of the clients eligibility and priorities across residential mortgages, RIOs and lifetime mortgages. The tool can be used before completing a full fact-find or it may determine that a referral pathway is more appropriate for that client. The Air Navigator helps to: • Identify over-50s prospects more efficiently, including those who may need advice now or in the near future • Build holistic customer profiles combining affordability considerations, financial goals and property information against the backdrop of a wider product spectrum • Provide an audit of a more considered advice approach, with documentation to evidence you have considered the wider financial options, reducing your risk • Spot opportunities for deeper planning, across retirement income, mortgage restructuring, inheritance considerations and long-term financial resilience Where necessary, the Air Navigator supports appropriate referrals into and out of lifetime mortgages, RIOs and standard residential products, ensuring clients are directed to the right product for their needs. Together, Navigator and Air’s wider toolkit help advisers deliver a more intuitive, consistent and customer-centred advice process. Air Sourcing: the industry-leading platform Air Sourcing enables advisers to navigate a growing suite of products designed for over-50s customers. Through Air Sourcing, members can access: • A fully FCA-aligned sourcing environment tailored to later life products • A broad range of lifetime mortgages, RIOs (Retirement Interest-Only) and other later life lending solutions • Clear comparison tools that highlight suitability considerations • Flexible search and filter options, helping advisers match products to clients’ goals and property and lifestyle circumstances Whether you’re new to later life lending or already advising, Air Sourcing can support a more streamlined process, reduce complexity and support evidence-based recommendations, especially important in the face of increasing regulatory scrutiny alongside growing financial pressures. Air Academy: professional development for a changing market Regulation, customer needs, and market expectations in later life lending continue to evolve, making continuous professional development essential. The world advisers operate in today is different from even a few years ago. Air Academy equips it’s members with: • Structured CPD modules, designed specifically for later life and retirement lending • Practical, scenario-based learning, so advisers gain confidence through realworld examples • Skills development, from understanding suitability requirements to managing consumer vulnerability • Training for both new and experienced advisers, making it suitable whether you’re entering the market or enhancing existing expertise Our training ensures advisers feel confident navigating conversations that matter, from supporting clients with changing retirement plans to helping them make informed decisions about long-term financial security. Your next step: book onto adviser training Booking onto an adviser training session today to uncover more about Air and the tools and technology available to our members — and to understand how they can support your workflow in a changing market. Or register for Air Club and become part of our community of more than 10,000 likeminded professionals. 09 MORTGAGE NEWSLETTER
10 MORTGAGE NEWSLETTER The later life lending market has changed dramatically over the last decade, and advisers have played a central role in helping clients navigate those shifts. Yet as expectations rise and client circumstances diversify, we understand that choice matters. That’s the backdrop to more2life’s latest evolution. This December, the lender has taken a significant step by integrating the full Horizon and Horizon Interest Reward product suite into its line-up, while also making a major enhancement to its popular Flexi plan. The result: more control for clients, more flexibility for advisers, and even more choice. A meaningful shift in flexibility: Flexi ERCs cut to 10 years Early Repayment Charges aren’t always the headline-grabbing part of a product, but advisers know just how important they can be when planning for the long term. From 11 December, more2life is reducing the ERC period on its Flexi plan from 15 to 10 years. On the surface, it’s a simple change. But in practice, it reflects an understanding of how clients’ lives, and the advice process, are evolving. For many borrowers, a decade offers a clear runway. It creates space to make confident decisions, knowing they aren’t locked in for longer than they feel comfortable. If circumstances change; downsizing, wishing to repay earlier, or simply reassessing future plans, the shorter ERC period helps ensure they retain options. For advisers, it offers something even more valuable: the ability to recommend a flexible, competitively priced lifetime mortgage with built-in safeguards that feel aligned to reallife scenarios rather than rigid timelines. It’s a practical enhancement rooted in more2life’s long-held priority; giving advisers the tools to support their clients with clarity, not compromise. A new chapter: Horizon becomes part of the more2life family While the Flexi enhancement stands out on its own, the bigger story is the arrival of Horizon. Long regarded as one of the market’s most client-friendly lifetime mortgage ranges, Horizon and Horizon Interest Reward have now made the move from Standard Life Home Finance to more2life. This integration is far more than a rebrand. It brings together two complementary propositions: Horizon’s strength in adaptable product design and more2life’s commitment to technology, service and adviser-led support. The Horizon suite now sits alongside the wider more2life product range, which already includes Flexi, Flexi Interest Reward, Maxi, Maxi Zero ERC, Tailored and Omni, creating the widest range of lifetime mortgages on the market. Shaping the Future of Later Life Lending: What Horizon’s Arrival Means for Advisers and Their Clients By more2life Marketing Team
11 MORTGAGE NEWSLETTER What makes Horizon stand out? It’s built around meaningful client choice. The range includes: • Fee-free and fee-paid options • An 8-year fixed ERC structure and an ERC exemption period that never expires • Downsizing protection from day one • Horizon Interest Reward, offering 5, 10 or 15-year interest payment periods • Interest rate discounts of up to 0.55% (subject to meeting relevant criteria) These sit alongside established features such as partial capital repayments from day one, inheritance protection where suitable, and flexible loan-to-values that help advisers support a broad spectrum of client needs. Seamless access through Fastpath Any product range is only as useful as the ease with which advisers can access and source it. One of the notable advantages of Horizon joining more2life is that it becomes instantly available through the same familiar processes; Fastpath and established sourcing systems, already used by advisers in the later life lending market. That consistency matters. It means advisers can explore new options without facing new systems. Applications look and feel the same. Decision-making flows through the same technology. And support comes from the same teams who already understand the pressures advisers face. This simplicity reflects more2life’s broader philosophy: technology should remove barriers, not create them. What this means for advisers Taken together, the shorter Flexi ERC period and the arrival of the Horizon suite, advisers gain both breadth and depth. 1. More tailored solutions Later life clients rarely fit into neat boxes. Some want to manage affordability, others want to protect inheritances, and many simply want to keep future options open. With the expanded product range, advisers can shape solutions with greater precision. 2. More room for client control Features such as flexible repayment options, shorter ERC terms, downsizing protection and interest rate discounts create a framework where clients can adapt their borrowing as life evolves. 3. More confidence in long-term planning With an expanded toolkit and seamless digital processes, advisers can map product features to clients’ long-term goals, whether those involve supporting family, home improvements, managing existing debts, or planning for care needs later on. A more empowered future for later life lending The integration of Horizon isn’t about adding another name to a product list. It’s about strengthening an ecosystem in which advisers have the support, tools and choice they need to deliver clear, confident advice. As more2life continues to invest in smart technology, strong service and an everbroader suite of products, one thing becomes clear: the company’s focus remains firmly on empowering advisers and shaping better outcomes for their clients. More choice. More clarity. More ways to help clients live the later life they choose.
12 MORTGAGE NEWSLETTER “My client is 62, retired, and financially secure - so why is it so difficult to find a mortgage?” She had equity, pension income, and a clear repayment plan. But the system said no. You already know this - it’s the reality for many older borrowers today. Financially capable but boxed out by rigid criteria and automated decisions because they don’t fit the mould. The rise of later life lending The UK’s ageing population is reshaping the market - the numbers speak for themselves. In Q2 2025 alone, over 33k new mortgages were issued to borrowers aged over 55, with lending value reaching £5.2bn1. That’s thousands of clients every week, many with complex profiles and non-standard income. This growth is driven by changing borrower needs. Today’s older clients aren’t just looking to release equity for lifestyle upgrades, they’re: • Still working or semi-retired • Managing more diverse income streams, such as pensions, investments and rental income • Financially supporting family • Seeking financial flexibility to maintain lifestyle and independence The challenge with mainstream lending Despite this shift, many older borrowers still face barriers, with research showing that mortgage rejection rates increase with age2. That’s because mainstream criteria doesn’t reflect these changing needs, with many failing to pass affordability tests despite having a secure financial profile. Age caps, rigid income assessments, and automated systems often shut the door on perfectly viable borrowers, leaving older clients underserved. This is where specialist lenders make the difference In a market where later-life lending is growing rapidly, specialist lenders play a vital role in offering solutions that mainstream providers often can't. They bring flexibility, personal underwriting and a deeper understanding of complex borrower profiles - especially for clients aged 55+. They understand that financial ambition doesn’t stop at 55, that retirement looks different for everyone. At Market Harborough, our daily Credit Committee assesses each case on its own merit, offering flexible solutions that work for your older clients. That means: • Accepting non-standard income, such as pension drawdowns, SIPPs, and rental income • Lending into retirement and beyond, up to age 85/no upper age limit on let and bridging finance • Supporting multi-generational applications, featuring up to four incomes/applicants • Offering interest-only options, with repayment strategies including properties, investments and pension lump sums Later life lending: Why Advisers need a Lender that listens Chris Thompson Head of Sales Market Harborough Building Society
13 MORTGAGE NEWSLETTER Our expert underwriters will look at your clients’ full range of income and assets, ensuring they get a mortgage that works for them. Real-life flexibility for real-life clients To bring this to life, Emma and Liam from our client profiles are a great example of how we offer flexible lending for older borrowers. They’re in their early 60s with equity from a previous home and income from pensions, investments and part-time consultancy. They wanted to downsize and find a mortgage that didn’t hold them back. Mainstream lenders couldn’t make the numbers work - pension drawdowns and part-time income didn’t fit the automated models. But with our manual underwriting and flexible criteria, we looked at the full picture and found a solution. Our client profiles highlight real-world scenarios and challenges, reflecting the types of people we support every day. These profiles help illustrate the depth of our expertise and the flexibility of our solutions. Explore more here. This highlights the importance of working with a lender who assesses income holistically and understands the nuances of later-life financial planning. Let’s chat about your older clients Later life lending is evolving and it’s time for a more thoughtful approach. If you’re working with older clients we’re here to help: • Flexible criteria for older borrowers, including pension, investment, and rental income • Manual underwriting with real people making the decisions • Clear communication and proactive support from our expert, award-winning team Let’s make later life lending more accessible. Get in touch Chat to your nearest BDM Or call our broker support team on 01858 412345 Monday – Friday, 9am – 5pm. 1. https://www.ukfinance.org.uk/data-and-research/data/mortgages/ later-life-lending 2. https://www.mpamag.com/uk/mortgage-types/later-life-lending/ is-the-mortgage-industry-ageist-why-over-55-borrowers-arebeing-left-behind/526253
FCA Speech that Gives an Insight into Future Plans Introduction We believe that our firms may be interested in a recent speech given by the FCA. This speech goes some way to revealing the current thinking of the Regulator, as well as providing an insight into the fact that further change is planned in the form of new regulatory initiatives. Financial wellbeing goes beyond one size fits all This speech by Sarah Pritchard, FCA deputy chief executive, at The Investing and Saving Alliance’s (TISA) annual conference covers two big challenges that the FCA sees: 1. Pensions: “We know some consumers are not saving enough or are accessing their savings too quickly. Others don’t have a plan for taking money out of their pot, or don’t realise there’s a choice to make. More than 10 million people say they’re simply too busy or confused to think about it. Pension-related decisions are as critical as they are complex. But recent research shows that over half of UK adults don’t understand enough about pensions to make these decisions. We are working to ensure the system delivers for consumers and the economy. Graeme Stewart Head of Consultancy Paradigm Consulting 14 MORTGAGE NEWSLETTER
15 MORTGAGE NEWSLETTER This includes: • Introducing targeted support, so consumers have greater access to support that bolsters their decision making. • Working to make pensions dashboards a reality, which will make it easier for consumers to find and understand their savings and improve retirement outcomes. There is no silver bullet here – no quick fix to solve under-saving and under-engagement – but we are playing our part.” 2. The declining rate of home ownership: “Today, more people are taking longer to buy a house. Many struggle to buy at all. Not because they don’t want to: 55% of non-homeowners do. Saving for a deposit is difficult: 42% expect it to take at least 5 years. Many people will rent through retirement. The proportion of retired consumers living in the rental sector is expected to more than double by 2041. Whether renting or paying off a mortgage, retirement costs are unlikely to be met by savings alone. In this moment of regulatory reform, we’re taking a step back and considering where a different approach may be needed. We’ve already set out a wide-ranging set of ideas to change our mortgage lending rules, with the aim of opening the possibility of homeownership to more people. We want to support people who rent to be able to buy a home if they want to. We’ve clarified our requirements to ensure firms use the flexibility in our rules to support good customer outcomes. More regulatory initiatives will follow.” Paradigm doesn’t cover every speech given by the FCA in our updates, but we felt that this was sufficient interest to be a good a CPD read for firms and we wanted to bring them to your attention. We have already seen certain changes to mortgage rules this year and firms can be reassured that Paradigm will keep you ahead of the curve across all relevant areas of advice as regards any further regulatory initiatives and/or change that the FCA are looking to introduce.
Strengthening Security with Multi-Factor Authentication Introduction At Paradigm, safeguarding your data is a top priority. As part of our ongoing commitment to cyber resilience, we have recently introduced Multi-Factor Authentication (MFA) across our platforms. Why MFA? Following a comprehensive security audit conducted by Deloitte, one of the key recommendations was the implementation of MFA. This additional layer of security ensures that all data stored behind logins— including personal details such as CPD records and client information—is better protected against unauthorised access. reassured that Paradigm will keep you ahead of the regulatory curve. Addressing Initial Challenges We acknowledge that the rollout of MFA was not without its challenges. The quick timelines and high settings of the security measures caused inconvenience for some users. Following Adviser feedback we requested that MFA prompts occur every 60 days, making the process more manageable and similar to routine password changes. This adjustment has now been implemented. Industry Standards and Regulatory Context Cybersecurity is not just a best practice— it’s an expectation. The Financial Conduct Authority (FCA) emphasizes strong cyber hygiene, robust systems, and operational resilience. While there is no explicit FCA rule mandating MFA for all brokers, the regulatory framework (including SYSC and operational resilience obligations) supports the use of “adequate controls,” which industry best practice interprets as strong authentication measures like MFA. Paradigm’s decision to implement MFA aligns with these guidelines and reflects our proactive approach to risk management. Real-world enforcement shows that firms have faced criticism and fines for weak cyber controls or lack of MFA, underscoring the importance of this measure. Looking Ahead MFA is already common practice across many industries, and its adoption is expected to grow. By introducing MFA, Paradigm is taking a positive step toward ensuring your data remains secure. We believe the 60-day validation period strikes the right balance between security and convenience. Thank you for your understanding and cooperation as we continue to strengthen our systems. For more details, please refer to our official notice: • Important Security Enhancement to Your Account • MFA Helpsheet 16 MORTGAGE NEWSLETTER By Head of IT
17 MORTGAGE NEWSLETTER As BBC Scam Safe week Shines a Spotlight on Fraud, Trustees are Urged to Step up and Make the Pledge Introduction The Pension Regulators blog follows up on the BBC’s Scam Safe week (22nd to 28th November). This reminds us all about our responsibilities to protect ourself, our businesses and our clients to do everything we can to prevent financial crime. Highlights “As we launch our new Pledge campaign, Paul Sweeney reviews the significant progress industry has made so far, what still needs to be done and the way ahead. Pension fraud can be devastating. In one hit, a lifetime of savings can be wiped out. And as our latest analysis indicates, fraudsters often target victims at a time of life when they may have little or no chance to recover their finances. Ensuring savers get the message their pensions could be at risk – and what they can do to stay safe – is critical. Over 650 schemes and organisations have now joined us by pledging and/or selfcertifying, helping to better protect 31.5 million memberships. Adoption of the Pledge has even spread beyond our remit, bringing the total memberships protected to 43 million – around 44% of pension savers. That’s real progress. But there’s more to do. We need the pensions industry to be 100% united in the fight against fraud.” - Paul Sweeney, Pension Scams Action Group Intelligence Business Lead Making the pledge Pension scammers screw up lives. But the industry is working together to stop them with more than 650 organisations pledging (in three steps as highlighted) to combat pension scams. Make the pledge for a pension scheme Make the pledge for an organisation Further information • Combatting Pension Scams • Stop! Think Fraud website • Paradigm Cybercrime support hub • Cyber action toolkit (free) • Cyber Essentials (free support) • Details of the free cybersecurity assessment that MITIGO can provide are highlighted within the strategic Partners page of the Paradigm website. Graeme Stewart Head of Consultancy Paradigm Consulting
Alright, let's talk tech. AI isn't some futuristic idea anymore; it's here, and it’s shaking up the mortgage market big time. Whether it's zipping up your paperwork or giving clients a better experience, firms that are savvy about technology are the ones that are saving time and, frankly, making more money. Here at Paradigm, we recognised that things are moving incredibly fast—like, what used to take ten years of progress is happening in one! That’s why we’ve launched a major initiative to help our members get ahead of the curve. Phase 1: Taking the Temperature (The Survey) First things first: we needed to know where everyone was at. We know that when people hear about AI, they often think about job losses or massive changes. But AI is already playing a role in the mortgage world—from automating admin to helping with risk checks. We put together a straightforward survey to grab a snapshot of how our members are using AI, what benefits they’re seeing, and what's holding them back. Your insights were crucial, helping us paint a clear picture of AI adoption within the brokering profession. Want to see what we found out? Phase 2: Introducing Your AI Playbook (The Scorecard) More and more potential clients are actually using Artificial Intelligence (think ChatGPT) to help them pick a mortgage adviser. They might ask for suggestions or use it to research you. Either way, your business needs to be shouting out the right signals that both people and robots can understand. That’s why we’ve teamed up with The Yardstick Agency to create a brand-new, completely free tool: The AI Readiness Scorecard. Exclusive to Paradigm members, this scorecard is your quick five-minute audit. It cuts through the noise and tells you honestly: is your marketing ready for the world of LLMs, and are you using technology as efficiently as you could be? Once you finish, you’ll get personalised results and recommendations straight to your inbox, revealing: • Marketing Mojo: Is your marketing actually optimised for AI? • Tech Tidy-Up: How efficient is your business’s overall tech use? • Growth Spots: Where you're smashing it, and where you need a bit of a push for future success. Get In It to Win It! The firms that jump on this now are going to have a massive leg up on the competition when it comes to being seen, being efficient, and delivering a stellar client experience. And it all starts with knowing exactly where you stand right now. Today is the worst AI will ever be—it only gets better from here! Make sure your business is ready for what's next. Paradigm's Mission to Get Advisers AI-Fit! 18 MORTGAGE NEWSLETTER Aimee Carnwath Senior Marketing Coordinator
11 MORTGAGE NEWSLETTER THE RESULTS ARE IN for our Artificial Intelligence Survey As a mortgage adviser at the forefront, your input on AI knowledge has been invaluable. View results here
www.paradigm.co.uk/mortgages 0330 053 6061 [email protected]
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