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.

FCA Mills Review: AI Set to Transform Mortgage Advice, Not Replace It

The Financial Conduct Authority’s (FCA) Mills Review has found that artificial intelligence (AI) is expected to help close the advice gap in the mortgage sector, but human advisers will remain essential. Industry leaders say the review highlights opportunities for AI to streamline processes, while maintaining the importance of professional, regulated advice.

The Mills Review, published by the FCA, examined the impact of AI across financial services. According to the review, as consumers increasingly use AI to search the mortgage market, the knowledge gap between firms and consumers is likely to narrow. However, the review also states that consumers will continue to trust advisers for complex and high-value decisions.

Stuart Cheetham, CEO of MQube, welcomed the review, noting that it recognises both the opportunities and responsibilities that come with greater AI adoption. Cheetham said that AI can help remove administrative burdens in the mortgage process, making transactions quicker and more efficient. The review also points to tokenisation-type solutions, such as open finance, as early examples of how technology can automate and simplify mortgage products and transactions.

Karl Griffin, CEO and co-founder of JammJar, described the Mills Review as a clear signal that AI in financial services has moved from experiment to expectation. Griffin noted that the FCA identified several potential controllers of the client relationship by 2030, including incumbents, big tech, AI intermediaries, and the consumer’s own agent. He said advisers should aim to become “AI-native” to maintain their role in the process.

The review concludes that the existing regulatory framework, including Consumer Duty, is fit for purpose and frames AI as a solution to the advice gap, rather than a replacement for advice. Human judgement is expected to remain central, with AI handling administrative tasks, data processing, and follow-up.

David Brooks, head of policy at Broadstone, commented that while AI can help people engage with financial products, it should be seen as a starting point rather than a substitute for professional guidance or regulated advice. Brooks emphasised the importance of public understanding of AI’s limitations, noting that generative AI may sound authoritative but is not always accurate.

For UK letting agents and inventory clerks, the review suggests that AI will increasingly support administrative and data-driven tasks, but the expertise and judgement of qualified professionals will remain crucial in the property sector.