It’s no secret that modern artificial intelligence chatbots have come on leaps and bounds since they first sprung onto the scene in the early 2020s.
Nowadays these clever online tools, which can automate tasks, process data and replicate human cognitive functions, are being used for just about anything. From creating images and coding to resume writing and research. But now, AI is also shaking up the world of mortgages.
“I’m seeing a rise in the number of homebuyers using AI to check how much they can afford to borrow, compare their mortgage options and get pre-application advice,” mortgage adviser and founder of Mortgage Confidence, Jo Jingree says.
“On the surface, this isn’t necessarily a bad thing,” Jo adds. “Mortgages can be confusing at the best of times, and AI can help demystify complex terms, unheard-of phrases and hard-to-understand legal details. But with buying a home being one of the biggest financial decisions a person can make, it shouldn’t be left entirely in the hands of an algorithm-driven chatbot — and for more reasons than one.”
Reasons why your mortgage shouldn’t entirely be left to AI
1. Mortgages aren’t black and white
On paper two people might earn the same income, but they might not necessarily be eligible for the same mortgage deal.
“That’s because a life-changing financial decision, like getting a mortgage, requires context,” Jo says. “Instead, personal details, like future financial plans, debt, job types and credit history all have a part to play when it comes to getting a mortgage,” the expert adds. “The same goes for the size of your deposit, age and spending habits.”
This means mortgage decisions are rarely black and white or easily digested by an algorithm. “And with AI struggling to work in the grey, it’s just another reason why no mortgage should be left solely in the fate of a machine-driven tool which can miss the nuance behind those details.”
2. AI only responds to what information you put in front of it
“The answers you get from AI are only as good as the questions you ask it,” Jo says. That’s because it’s only answering what you are asking.
“And, as we’ve just covered, every mortgage application is full of nuance with details and information that you, as a homebuyer, might have not known to include,” Jo adds.
3. AI can make mistakes, so it can’t be fully trusted
How important is trust to you? Of course, just like humans, AI isn’t perfect and it can make errors, especially if it’s not grasping the full extent of your home-buying situation.
“But human judgment brings experience, accountability and context — all of which helps build trust, ” Jo says. “I believe trust is the foundation of the adviser and client relationship and it’s something AI could never replicate. Whether you’re a first-time buyer navigating the mortgage market or remortgaging for the second, third, or fourth time, having expert human support matters. Anyone who’s been through the homebuying process knows that plenty can go wrong along the way, which is why having a reliable and supportive real-life adviser to turn to is invaluable.”
4. One wrong turn could cost you
Whether it’s delays in your approval or misleading affordability results, getting your mortgage application wrong can be a costly mistake.
“And with a home purchase being one of the most substantial financial commitments you can make, it’s essential to approach it with the right expert guidance,” Jo adds.
Instead…get a real life expert at your fingertips
A mortgage isn’t just numbers on a screen. “Instead, a mortgage is as unique as our fingerprints, ”Jo says.
Which is why speaking to a great mortgage adviser who knows the industry inside and out is key.
Along with having relationships with real-life lenders and underwriters, mortgage advisers can offer a supportive hand and help you explore personalised options right for your circumstances (no matter whether you’re a first time buyer, you’re remortgaging, moving home, you’re credit impaired, you’re self-employed or you’re considering a government scheme).
“At the end of the day, AI may help make certain tasks faster and more efficient, but it can never replace advice from a real-life mortgage adviser who knows the industry like the back of their hand — especially when it comes to something as important, personal and financially momentous as buying a home,” adds Jo.
Multi-award-winning mortgage adviser Jo has more than 25 years’ experience in the industry and offers a 30-minute no-obligation phone call. So, whether you’re coming to the end of a mortgage deal or are looking to buy your first home, do get in touch.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances, but we estimate it will be £399.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please be aware that by clicking on to some of the above links you are leaving the Mortgage Confidence Ltd website. Please note that Mortgage Confidence Ltd nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.