Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

AI and Professional Advice Both Key to Future of UK Mortgage Market

A recent report from Mortgage Strategy states that both artificial intelligence (AI) and professional advice will play important roles in the future of the UK mortgage market. The article notes that technology and advice are not in competition, but rather should be combined to improve outcomes for consumers.

Many lenders are investing in AI to enhance customer journeys, and these improvements may impact parts of the advice channel in the future. However, the report cautions that claims about AI causing a wholesale shift to direct lending and threatening the existence of intermediaries are overstated.

The article highlights that advisers are also adopting technology to reduce administration and increase efficiency. It references a factsheet published by Ami, offering practical guidance for smaller, directly authorised firms on exploring and safely adopting AI in the advice process.

The report discusses the importance of shaping the future mortgage market by combining advice and technology. It references an FCA TechSprint event on Open Finance and the mortgage journey, which raised questions about how technology could create a more connected experience for consumers and provide earlier visibility of financial stress.

The article also considers the potential of Open Banking to make the mortgage journey more efficient and to help identify early signs of harmful financial behaviour. However, it emphasises that data alone does not solve problems, and professional advice remains essential to help consumers understand their options and make informed decisions.

The report concludes that removing friction from processes is not always the same as improving outcomes. It stresses the value of taking time to discuss mortgage decisions, future affordability, and protection options, which are core parts of the advice process.