More than a third of homeowners are using artificial intelligence to explore mortgage options.
Research by Smart Money People found 48 per cent of homeowners believe AI could save time and reduce paperwork within the mortgage process.
While a further 46 per cent thought AI was a useful tool for comparing mortgage options more efficiently.
Out of those respondents aged between 25 and 34, 48 per cent had used AI tools to support their mortgage decisions and found them helpful, compared to just 15 per cent of those over the age of 45.
Despite homeowners embracing AI, 40 per cent of brokers said they had no plans to adopt AI tools into their business.
According to the research, just one in eight brokers were using AI within the advice process.
Around 40 per cent of brokers said they felt uncomfortable with the idea of AI influencing lending decisions.
Jacqueline Dewey, chief executive of Smart Money People, said: “There’s a real disconnect emerging between what homeowners want and what brokers are ready to offer when it comes to AI.
“Many consumers are already relying on these tools to understand their mortgage choices, but brokers are still wary, particularly about transparency and trust.
“While AI can be a powerful tool, it’s important to remember that for Owner Occupied mortgages, advice is a regulatory requirement, whether that’s from a broker or a lender’s in-house adviser. “
The research also found 12 per cent of homeowners said they would trust an AI-powered tool on its own while 30 per cent said they would prefer advice from a human broker.
alina.khan@ft.com
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