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

AI Unlikely to Fully Replace Mortgage Advisers, Says Industry Report

A recent report published by Mortgage Solutions examines the growing role of artificial intelligence (AI) in the UK mortgage sector. The report states that while AI is reshaping how lenders and brokers operate, it is unlikely to fully replace human mortgage advisers.

The article, written by Dale Jannels, CEO of One Mortgage System (OMS), discusses how AI is increasingly used to manage applications, assess risk, support customers, and meet regulatory requirements. According to the report, AI is helping firms operate more efficiently, make better-informed decisions, and improve the overall customer experience. However, many organisations are still working through the practical challenges of adopting this technology.

The report includes a direct response from an AI system regarding its potential to replace mortgage advisers. The AI states that it will take over parts of the job, such as speeding up fact finds, criteria checks, case notes, document reviews, rate alerts, basic client queries, and administration. It may also handle more straightforward cases through digital or execution-only routes.

However, the AI response highlights that mortgage advice involves more than product searches. It requires judgement on suitability, risk, affordability, protection gaps, family goals, credit issues, self-employed income, later life cases, buy-to-let tax considerations, and customer support. These areas, according to the AI, are where human advisers remain essential.

The report also notes that the Financial Conduct Authority’s (FCA) mortgage advice rules place responsibility on firms to ensure mortgage suitability based on the customer’s needs and circumstances. The FCA does not currently plan to introduce AI-specific regulation, instead relying on existing frameworks such as Consumer Duty and senior managers’ accountability. There is a distinction between advised and execution-only business, and FCA rules require that if advice or a recommendation is given, the sale cannot be treated as execution-only unless advice has been explicitly rejected and the appropriate rules followed.

The AI concludes that while it is unlikely to replace mortgage advisers as a profession, advisers who ignore AI may lose ground to those who use it effectively. The report suggests that the most successful advisers will be those who combine AI-backed research with strong client care, clear advice records, good protection conversations, compliance, follow-up, and specialist knowledge.