Fignum has launched its first Mortgage Tech Pulse 2026 (The Pulse), a new report looking at how lenders across high street banks, building societies and specialist lenders are using technology, data and operations to keep up with a changing UK mortgage market.
The report found technology is now seen as essential for keeping up capacity, managing risk and meeting customer expectations.
Lenders reported that sticking with old systems is now riskier than changing.
Additionally, the research found many lenders are running large transformation programmes, especially in origination and servicing.
There was a clear move towards change, with lenders now seeing the cost of standing still as higher than the cost of updating systems.
The report also showed that data use is on the rise, with more lenders using third-party data, automated valuation models (AVMs) and better MI to speed up and improve decisions.
Most lenders said they wanted a “single source of truth” for their data, but integration was patchy, and data ownership problems continue.
The Pulse stated that regulation is a main reason for investing in new technology.
Steve Carruthers, growth director at Fignum, said: “This report reflects a market that understands the direction of travel but is still grappling with how best to execute.
“Technology is now fundamental to everything lenders do, from customer experience through to risk management.
“The challenge is no longer whether to change, but how to do so without destabilising core operations. Agility will define success in the years ahead.”
Lisa Neary, vice president, new business development, UK BFSI at Firstsource, said: “What this research makes clear is that technology strategy is rarely the problem. Execution is.
“Lenders are trying to run transformation alongside business as usual in an increasingly complex environment.
“The cost of standing still now exceeds the cost of change, but poorly sequenced change introduces real operational and regulatory risk.”
Charles Roe, director of mortgages at UK Finance, which is hosting the launch webinar, said: “The Mortgage Tech Pulse highlights just how quickly the operating environment for lenders is evolving.
“Technology, data and execution capability are now central to delivering good outcomes for borrowers and supporting a resilient mortgage market.
“We are pleased to host the launch discussion and bring these insights to a wider industry audience.”