Six in 10 mortgage brokers (58%) are open to AI playing a bigger role in the sector, according to new research from Nottingham Building Society.

The society’s findings also revealed that 45% of brokers believe that lenders have not moved quickly enough to ensure they cater for the evolving needs of borrowers, with many urging them to consider the opportunities that AI could bring to the mortgage sector.

Nottingham Building Society’s study was based on 500 UK respondents currently working as mortgage brokers. It found that more than half (55%) believe customer criteria and incomes are becoming increasingly varied, as a flux in interest rates and stamp duty changes threaten the homeownership aspirations of millions across the UK.

Chief lending officer at Nottingham Building Society, Praven Subbramoney, said there is a “pressing need” for lenders to rethink their approach to affordability and mortgage accessibility.

“Borrowers today are navigating ever more complex financial situations and are becoming increasingly frustrated with the hurdles they face within the mortgage process,” Subbramoney commented. “Our industry must respond with innovative solutions to help people traverse the system more efficiently.”

The study also found that 30% of brokers believe AI can play a role in mortgage applications but only if it is properly regulated, and a further 28% are fully in support of it streamlining the process.

However, a fifth (20%) of brokers said they remain sceptical about the use of AI in the mortgage process, either not wanting to see it involved until it’s safe and properly regulated or not wanting it to be involved at all.

To combat this, 57% of brokers believe that lenders must take proactive steps to develop new products that address the financial realities of today’s homebuyers.

“Only by listening to the concerns of brokers and borrowers alike can we achieve meaningful solutions which will improve the process and make homeownership more achievable,” Subbramoney added.

“We urge lenders to take these concerns seriously and to prioritise innovation and flexibility across the sector, ensuring that all customers, regardless of their financial background, have access to the opportunities they deserve.”

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