Paradigm Mortgage Services has embarked upon a new strategic partnership with financial capability platform Castlight Financial.
Castlight has recently launched its affordability passport proposition which is a real-time affordability platform designed to provide a full and clear picture of a client’s financial capability.
Castlight worked with Equifax to launch the platform.
The platform can provide clients with full disclosure on their current financial well-being, providing a transparent view of all their finances and credit history to share with their mortgage broker.
It is designed to help both brokers and lenders with mortgage applications and underwriting decisions, providing a summarised overview of the client’s spending behaviour, which should considerably reduce the time it takes to make a mortgage application.
The affordability passport will be created by the client in a secure and private portal, and then shared with the adviser, with the information able to be integrated into existing origination platforms.
Paradigm has linked up with Castlight and will be providing a soft launch of the proposition out to a limited number of member firms. As an ‘adoption partner’ Paradigm’s firms will then provide feedback, which will be integrated into the system, before a further rolling-out of the proposition.
Bob Hunt, chief executive of Paradigm Mortgage Services, said: “Post-MMR the need to fully and truly understand a client’s financial situation and their ability to afford the mortgage has never been so great. Advisers, and lenders, using paper-based information and various agencies, can spend a large amount of time trying to review and understand a client’s bank and credit data; the market is crying out for a proposition that can offer a transparent view seamlessly and effectively.
“The affordability passport proposition provides that opportunity, delivering a ‘single view’ of the client’s finances, which can then be quickly plugged into both the adviser’s and the lender’s systems, providing an accurate picture, and ensuring much quicker sourcing and underwriting of the client’s mortgage.
“We believe this is a major step forward for mortgage practitioners, and we are therefore incredibly pleased to be Castlight’s primary distribution partner. A select number of Paradigm firms will now begin using the system and we’ll be providing Castlight with their feedback before the next stage in the development is completed, and we begin to roll this out to more of our members.
“This has the capacity to radically alter the client’s, broker’s and lender’s mortgage application experience, to cut down on the delay and provide a far more structured and in-depth view of the attractiveness of the potential borrower. It’s something we are very supportive of and we’re looking forward to working with Castlight and hearing our member’s views on it.”
Phil Grady, CEO of Castlight Financial, added: “We are delighted to be working with Paradigm Mortgage Services to bring this product to the sector. Mortgage brokers have never had access to this depth of information about their customers before and we are confident this will enable them to write more business with the added confidence that all the information on their clients is delivered in real time.
“It’s our ambition to make the mortgage origination process no longer than 10 minutes and we believe working with Paradigm, this can now be delivered.”
