When it comes to innovation, we can become obsessed with chasing new shiny solutions.
Regulators and governments are paying unprecedented attention to the mortgage and conservation industries. From a review of mortgage rules considering the future of the mortgage market, to a market study of the pure conservation sector, it seems we could take a moment to pause and reflect.
We cannot create a two-speed market
Before we rush to develop the product or digital tool that we believe is the future of the industry, we need to stop and ask: Is this what customers want? And, most importantly: where does the advice fit in?
Today, it would be unusual to explore the future of the mortgage industry without acknowledging the transformative impact of technology, particularly artificial intelligence (AI). When artificial intelligence can predict your next purchase and chatbots respond within milliseconds, you’d expect customer service to be at its peak.
However, for many consumers, the experience feels colder, more fragmented, and increasingly frustrating. Here’s a disturbing truth: As technology advances, customer service takes a step back. Across most industries, we see businesses pursuing digital transformation at the expense of the human touch that builds loyalty.
True innovation means moving forward with purpose, learning from the past and listening to consumers
The irony of it all is obvious. A recent survey showed that while 56% of companies use AI chatbots, about 75% of customers still prefer talking to a human to resolve complex issues. However, as a sector we need to embrace technological advancements. Compared to other industries, the real estate transaction process lags significantly behind. The process was still slow, the paper heavy and full of friction.
joint solutions
Digitization can and should play a role in speeding up conveyancing, increasing transparency and easing the stress faced by buyers and sellers. But we cannot assume that technology alone will solve these problems. Without advisors to guide clients through complex processes, digital tools have the potential to become another layer of confusion.
Since younger borrowers want to do everything from their phones, they clearly don’t want a lot of paperwork. But people throughout the ages still value contact between people. Building a purely digital mortgage journey could leave customers behind. We cannot afford to create a two-speed market where some are catered for and others are excluded.
While 56% of companies use AI chatbots, approximately 75% of customers still prefer talking to a human to resolve complex issues
Hybrid models will be the future, with technology adding value and providing advice where it really matters. Of course, there is no algorithm that allows families to make the biggest financial decisions of their lives.
This is where consultants stand out. They provide a human touch, provide the depth of information needed and the ability to answer difficult questions and uncover nuances that digital tools invariably miss. If customer service is a casualty of innovation, then advice is the antidote.
Take the proliferation of “green” mortgages, for example. On paper, the concept makes sense: Incentivize people to buy energy-efficient homes or renovate existing homes by offering better lending deals. But the demand isn’t there yet.
Here, advice is crucial. Advisors can gauge whether customers truly value these products, provide feedback to lenders and explain real-world benefits to borrowers. Without advisors to act as filters, lenders risk misdiagnosing need and missing targets.
That doesn’t mean green mortgages are doomed, but until consumers are ready to get involved, we’ll end up seeing shelves full of niche products with little uptake.
Sometimes the best innovation isn’t inventing something new. It’s about taking a good idea from the past and seeing if it can be adapted to today’s market.
Here’s a disturbing truth: As technology advances, customer service takes a step backwards
Offset mortgages, rent assessments, 100% mortgages, flexible repayment products, self-employed options etc. are not revolutionary ideas. But they get left behind as we chase shiny new concepts. Innovation requires both vision and reflection. If we forget this, we risk solving problems that no one asked us to solve, while ignoring obvious solutions.
Innovation in mortgage lending is critical. But true innovation means moving forward with purpose, learning from the past and listening to consumers. This is how we’re building the future of mortgages, with advice at its core.
Stephanie Charman, CEO, Association of Mortgage Brokers
This article appears in the October 2025 edition Mortgage strategy.
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