Paradigm Mortgage Services, the mortgage services proposition, is celebrating its 5th anniversary since its launch at the end of 2007.
The distributor has now secured a 3.5% share of the mortgage market via approximately 2,200 Registered Individuals (RIs) currently placing business through it.
Paradigm’s membership base has grown to include 375 directly authorised (DA) mortgage partner firms, 360 DA firms active through the firm’s sister company, Paradigm Partners, and a further 500 appointed representative firms via its strategic partnership with PFA/Caerus.
Paradigm’s unique model gives full Partnership member firms an equity stake in the business as 50% of the distributor’s equity is placed in trust for them. All firms also receive an income rebate each year based on the amount of business placed with Paradigm over the course of that year. Up until the year end April 2012, Paradigm had distributed over £750k in rebates back to member firms.
In the past five years Paradigm has achieved a number of other key milestones including:
- A net increase in firm members each and every year since launch.
- An increase in profits each year.
- Key account status with lenders, providers and relevant mortgage-associated suppliers.
- Mortgage business that delivers above average value and quality metrics.
- A disproportionate percentage of affluent/high-net worth business with consistently high cross-sales penetration.
Bob Hunt, Chief Executive of Paradigm Mortgage Services, commented:
“This is a pivotal moment for the business and there is a real sense of pride at reaching our 5th anniversary, particularly given the changing nature of the mortgage market over the past five years. Our focus has always been on ‘profit through partnership’ which is why we have shaped the business this way and why our focus is as much on our lender/provider partners as it is our members. We purposefully decided at the outset that this would not be a proposition open to all firms and we feel we have been vindicated in focusing on quality all the way. Paradigm has never held an aspiration to recruit members just for the sake of volume and given the way the market has played out, we feel justified in this focus.
“This business is owned by a number of Paradigm individuals and, very importantly, the members themselves; it has always been our aim to offer much more to members than ‘exclusive products’ and the fact that we were able to distribute over £750k back to members in the 2011-12 year shows that we are delivering on our promise to reward those intermediaries who generate the value in Paradigm. I am very fortunate to have a very strong team at Paradigm and their efforts and dedication have certainly made this business the success it is. The good news is that we are still a young organisation and there are many more opportunities to be taken and further growth to be achieved.
“We will continue to deliver quality to all concerned and it is our sincere hope and belief that in a further five years we will have significantly expanded and improved our overall proposition. The hard work does not stop here and we can assure all members and stakeholders that we will be seeking to deliver further value to all in the months and years ahead.”