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 Replace Mortgage Advisers, FCA Consultation Suggests

A recent report by Mortgage Solutions discusses the ongoing debate about whether artificial intelligence (AI) could make mortgage advisers obsolete. The article references the Financial Conduct Authority’s (FCA) latest Mortgage Rule Review consultation paper, which highlights the continued need for human advisers in the mortgage process.

The FCA’s consultation paper focuses on improving access to mortgage finance for groups of borrowers who may have been under-served in the past. The paper discusses flexibility, proportionality, and reducing unnecessary barriers, but it also assumes that someone will help these borrowers understand new opportunities. According to the report, that role is more likely to be filled by a mortgage adviser than by AI.

The article notes that many under-served borrowers only discover changes in the market when they engage with an adviser who understands their circumstances and available options. The FCA’s consultation also leans heavily on Consumer Duty principles, which require firms to understand customer circumstances, identify needs, assess suitability, and demonstrate positive outcomes—areas where advisers are seen as adding significant value.

The report states that the UK mortgage market is already predominantly intermediary-driven, with most lending completed through advisers. This suggests that consumers value professional support when making significant financial decisions. The consultation paper reinforces the idea that advice, rather than information alone, is key to achieving better outcomes for borrowers.

While AI can improve efficiency and reduce administrative tasks for advisers, the article concludes that AI cannot replicate the trust, accountability, and professional responsibility provided by human advisers. For letting agents and inventory clerks, this highlights the ongoing importance of personal service and professional advice in the UK property sector, even as technology continues to evolve.