Bob Hunt, CEO of Paradigm Mortgage Services, has actively championed the DA community since the launch of Paradigm in 2007. Both publically, and behind the scenes, Bob works hard to use his experience and influence to ensure appropriate recognition and fair treatment for intermediaries in a range of areas, from Proc fees and quality metrics to product access and dual pricing. Paradigm has proved that despite tough market conditions it is possible to not only compete against other larger scale more established Distributors, but in creating a new model of distributor – a partnership model – to reward firms for the consistency, quality and loyalty of their business support.
Bob’s latest article is available below, and there is an extensive Blog Archive including all past articles.
05 Mar 2021
Lenders have not got to grips with how the pandemic impacted borrowers
In two separate analyses of what terms advisers are searching for most it is probably unsurprising to learn the number one searches related to furloughed workers and lenders offering ‘furlough-friendly mortgages‘.
This is the new reality for large numbers of borrowers who either spent time during 2020 being furloughed, or are still part of a furlough scheme which isn’t due to finish until the end of September.
A year ago how many had even heard of furloughing?
And yet here we are with a large number of homeowners or those seeking to purchase, needing advisory support in order to help them through what is increasingly becoming a very complex and convoluted mortgage maze.
There is, of course, some positive news in terms of borrowers in such a situation actively going to advisers for support and a large cohort who are not dissuaded from continuing their purchase ambitions even when the last 12 months may not have been a pleasant experience.
Unsettled mortgage environment
However, there will also be a large number of existing borrowers who are attempting to refinance after being furloughed, and their advisers will be having to deal with a very unsettled mortgage environment.
An environment where there is little standardisation and where lenders have very different ways of assessing these borrowers, the information they require, the timeline they will use, and just how stuck to their old ways they will be in that assessment.
This is where advisers and their clients need clarity.
As yet many lenders have not got to grips with how the pandemic impacted borrowers and they are still far too wedded to a traditional way of assessing income and affordability which is only likely to lead to rejection.
The last 12 months have not been normal, and this is why many advisers have been calling for a much more flexible approach to borrower finances.
It may be in sectors like mortgages for the self-employed where the bigger problems are, but also those who would in any other period be a normal, mainstream borrower, now find themselves firmly marked as specialist by lenders who would previously have marked them as vanilla.
Affordability assessments
Borrower financial assessments can’t just be focused on short-term hits to income, or on three-month periods which look completely different to the rest of their entire historical situation.
They have to cover everything in the round, what happened during furlough, and how that has recovered.
And if the borrower is still on furlough, they need to be based on any number of considerations including job prospects, the industry they work in, the financial history, and their ability to keep on making those mortgage payments.
Advanced technology combined with artificial intelligence (AI) and much richer consumer data is set to help here, with new reports, insights and understanding being developed as I write.
This will help all – including mainstream lenders – in understanding and accepting what are undoubtedly good borrowers caught out by temporary pandemic circumstances.
However, in the meantime an individual and fairer approach most certainly is required.

Blog Archive
Lenders have not got to grips with how the pandemic impacted borrowers
05 Mar 2021
Supply needs to match demand
02 Mar 2021
Don't overlook product transfers
19 Feb 2021
Stamp duty debate a black hole
05 Feb 2021
Industry wide levy is a head scratcher
02 Feb 2021
Long-term imposter product may finally become relevant as a high LTV option
29 Jan 2021
Uncertainty continues into 2021
07 Jan 2021
Stay ahead of the fraudsters
21 Dec 2020
Industry change starts with what we do ourselves and within our businesses
11 Dec 2020
Second lockdown will keep lender resource focused on payment deferrals
09 Nov 2020
Is now the right time to add to property portfolios?
08 Sep 2020
Advisers have duty of care as fraudsters step up scam activity
17 Aug 2020
IFAs and mortgage advisers – two sides of the same coin
12 Aug 2020
Brokers need fair play from lenders in high LTV space
31 Jul 2020
Are you ready for lock-stalgia?
03 Jul 2020
Show your clients what you can do
19 Jun 2020
Specialist lenders may need end to self-cert payment holidays to survive
16 Jun 2020
Reading the signals
15 Jun 2020
Is the FCA really in this with us?
28 May 2020
Self-employed people must not be locked out of future mortgage borrowing
11 May 2020
I wish I could say the worst is over
07 Apr 2020
Looking for scintillating letters of recommendation
11 Mar 2020
FCA must answer why it is promoting execution-only
25 Feb 2020
Goodbye doesn’t have to be forever
17 Feb 2020
FCA changes could have harmful consequences
07 Feb 2020
This could be the year of economic stimulation
03 Feb 2020
Putting the cart before the horse
17 Jan 2020
The start of a new decade
15 Jan 2020
The importance of advice
12 Dec 2019
Keep in touch with clients or lose them for good
06 Dec 2019
Later life market still needs work to be fit for purpose
22 Nov 2019
Helping mortgage prisoners
04 Nov 2019
Combatting mortgage fraud
20 Sep 2019
Upping demand for green mortgages
17 Jul 2019
Tory leadership hopefuls are right to be focused on social care in later life
01 Jul 2019
Responding to political messages about the housing market
20 Jun 2019
Promoting execution-only is not treating customers fairly
10 Jun 2019
Changing regulatory permissions can be the making of your business
14 May 2019
If we don’t talk up the market, then who will?
02 May 2019
Deeper product transfer data would show lenders’ market shifts
29 Mar 2019
Mortgage Market Study inconsistencies make for frustrating read
27 Mar 2019
The relationship between lender, broker and borrower
18 Feb 2019
Advisers must not leave mainstream mortgage market to lenders
28 Jan 2019
Let’s not blow Fleet and Secure Trust Bank out of proportion
17 Jan 2019
‘Regulation should not be reworked purely to support automated advisers’
04 Jan 2019