More than half – 58% – of mortgage brokers are open to artificial intelligence (AI) playing a bigger role in the mortgage sector, a survey from a mutual found.
Research carried out by Nottingham Building Society found that 30% believed AI could be instrumental in mortgage applications if properly regulated, while 28% said it would streamline the process.
A fifth of respondents had reservations, however, and said they either did not want to see it introduced until it was safe and regulated, or did not want it to be part of the process at all.
Adapting to borrower needs
Overall, 45% of brokers said mortgage lenders had not acted fast enough to cater to the changing needs of borrowers.
To address this, 57% of brokers said lenders should take steps to create products that suited the circumstances of today’s borrowers.
Going digital
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More than a quarter – 26% – of brokers said there needed to be a more flexible lending process, while a similar proportion – 27% – wanted applications to be quicker and less complicated.
Some 23% said they wanted lenders to embrace technology and innovation to improve the customer experience.
Brokers reported that the circumstances of borrowers today aren’t the same as they were for previous generations, with 55% of brokers agreeing that customer criteria and incomes are becoming increasingly varied.
Brokers said the needs of borrowers had changed, as 55% agreed that criteria and incomes were getting more varied. A further 31% said there was a rise in borrowers using schemes to get onto the housing ladder, indicating people were making use of different options.
Praven Subbramoney, chief lending officer at Nottingham Building Society, 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. Our industry must respond with innovative solutions to help people traverse the system more efficiently.
“Only by listening to the concerns of brokers and borrowers alike can we achieve meaningful solutions [that] will improve the process and make homeownership more achievable. 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.”