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.

Over a Third of UK Borrowers Use Unregulated Mortgage Advice

More than a third of UK consumers—36%—are seeking mortgage advice from unregulated sources, according to research from Zable. The findings highlight concerns about the quality of information influencing high-value property decisions.

The survey, which included 2,001 UK credit card holders, revealed that 83% of respondents had sought financial guidance from non-regulated sources. Mortgages were identified as one of the key areas where consumers are turning to informal advice, such as social media, artificial intelligence (AI) tools, family, and friends, instead of regulated professionals.

Zable's research found that almost a third of credit card holders, representing over 10 million people, reported losing money due to bad advice related to credit cards. Of these, 21% experienced losses of £100 or more in the past year. Mortgage-related decisions were among those with the highest costs, with the most common loss range among affected consumers falling between £500 and £1,000.

The study also noted that younger consumers are particularly likely to use unregulated sources for financial advice. Specifically, 93% of 25-34-year-olds and 92% of 35-44-year-olds reported doing so. Around one in ten consumers said they already use AI tools for financial advice, including areas such as budgeting, investing, and insurance.

To assess the reliability of AI-generated guidance, Zable tested four major platforms—ChatGPT, Claude, Gemini, and Grok—against nine common personal finance questions. All four tools failed at least some of the tests, with Grok failing all nine. Three of the four platforms provided US-focused recommendations rather than advice relevant to UK consumers, and some responses included outdated UK information.

The research also found that consumers rarely verify the guidance they receive before making financial decisions. 68% of respondents did not check the risks involved before acting on financial advice. Only 24% would check a financial professional’s credentials, and just 22% would investigate whether advice may be influenced by sponsorships, commissions, or conflicts of interest.

These findings are relevant for UK letting agents and inventory clerks, as the quality of mortgage advice can impact tenants and landlords making property decisions. The prevalence of unregulated advice, especially among younger consumers, may influence the property market and the reliability of decisions made by clients.