Artificial intelligence (AI) is no longer a distant promise — it’s already changing how the mortgage market operates. From enhancing broker-lender interactions to powering digital mortgage journeys, AI is steadily shaping the way borrowers, lenders, and intermediaries engage.
But while the technology is advancing fast, the human element remains essential. Around 90% of mortgages are still broker-led, and two-thirds of borrowers say they want meaningful advice and interaction with a person when making decisions. For the foreseeable future, the mortgage experience will remain a hybrid of digital mortgage technology and human expertise.
What do we mean by AI in mortgages?
AI is often misunderstood in the mortgage sector. It isn’t just chatbots. According to the OECD, artificial intelligence describes technologies capable of tasks that usually require human-like intelligence — understanding language, recognising patterns, and making decisions. For lenders, building societies, and specialist banks, AI in mortgage technology often means:
- Machine learning models that speed up credit decisioning
- Analytics tools that process large borrower datasets at scale
- AI assistants that reduce repetitive admin for brokers and servicing teams
The UK market is expanding rapidly — the government’s 2023 sector report identified over 3,700 active AI providers, from innovative start-ups to global players like ChatGPT, Microsoft Copilot, and Google Gemini.
Where mortgage AI started
AI first entered the mortgage conversation as early as 2015, often in the form of decision-tree models with simple consumer interfaces. They helped guide borrowers through basic steps, but lacked the intelligence, flexibility, and integration that modern mortgage platforms now provide.
Where we are now
Today, AI in mortgage lending has become far more advanced. Some lenders are using AI to streamline refinancing, enabling straightforward product transfers without manual intervention. For brokers, this is where the hybrid model comes to life. Borrowers can self-serve if they want a simple switch — speeding up the process. But many still choose to loop in a broker for advice. This approach:
- Creates a smoother experience for borrowers
- Saves advisers time on admin and compliance
- Keeps the broker central to customer relationships
Where AI in mortgage technology is heading
The real potential lies in using AI to unlock borrower behavioural insights. Increasingly, mid-sized lenders and building societies are adopting AI-driven analytics to process datasets that were once too costly or complex to review.
This shift links directly to Consumer Duty. By spotting borrower trends earlier, AI can help lenders identify signs of vulnerability, recommend suitable products, and improve outcomes. Looking ahead, Gartner identifies “Agentic AI” — AI with the ability to make decisions and take actions — as a transformative trend. For mortgage lenders, this could mean faster and more accurate credit assessments, automated customer service journeys and scalable case management without adding resource.
Why this matters for lenders, brokers, and building societies
The opportunities for mortgage providers adopting AI are significant. Smarter data modelling can support faster, more accurate decision-making, while automated workflows save advisers time and allow them to focus on what matters most — building stronger client relationships.
AI also has the potential to improve the customer experience, with more tailored recommendations and smoother journeys that feel simple and intuitive from start to finish. At the same time, operational efficiency gains mean lenders can scale their businesses without compromising on service quality.
But with opportunity comes responsibility. To unlock real value, AI must be implemented with strong governance, robust data privacy safeguards, and clear ethical frameworks. The right balance of technology and human oversight will be critical.
At Finova, we believe AI is a powerful enabler for lenders and brokers — not a replacement for people. By combining smart mortgage software with human expertise, the market can deliver faster, fairer, and more personalised customer journeys.
Hamza Behzad
Business Development Director
