Economic pressures continue to weigh heavily on the UK mortgage sector, with 88% of lenders identifying the economic climate, interest rates, and the cost of living as major or moderate concerns, according to new research from Landmark Information Group.
It reveals that process inefficiency has overtaken regulation as the main frustration for lenders. Nearly half (45%) of a lender’s working day in 2025 was spent chasing or being chased by stakeholders for updates, up from 32% in 2024. Owing to this, it’s not surprising that 40% of respondents cited long transaction times as their greatest frustration. This in turn replaces regulatory and administrative burdens, which dominated in 2024 (61%).
To combat inefficiencies, lenders have increasingly turned to technology as the primary lever for improvement. When asked which three areas of the business they were prioritising to improve efficiency and reduce costs, nearly half of lenders (48%) say they are investing in AI solutions to automate tasks and optimise operational workflows.
Furthermore, when asked to select the three factors that would have the greatest positive impact on productivity and business success, 45% cite the effective use of artificial intelligence (AI) to automate routine tasks.
The use of AI is quickly becoming a mainstream part of how the industry operates and over the past 12 months optimism towards AI and automation has soared. In 2024, nearly half (43%) thought AI would have minimal impact on their work in the next five years. In 2025, that viewpoint has dropped to just 3%, signalling the increased pace of development.
The research shows that using technology to reduce workloads remains the number one improvement to attract and retain talent. However, legacy technology or limited IT capacity/budget (63%), data quality or completeness issues (55%), and security, privacy, or compliance concerns (48%) remain a persistent barrier to progress.
Overall, the research suggests the sector is aligned on the need for better data sharing as 98% of respondents believe a secure, interoperable data repository would address systemic inefficiencies that slow down transaction times.
Landmark’s cross-industry initiative, Project 28, has united property professionals – from agents to conveyancers to lenders – to commit to reducing the time from sale agreed to exchange to just 28 days, addressing a process that currently averages 120 days. Homebuyers and sellers also recognise the importance of improving the transaction process, with consumer research shows a majority willing to pay an upfront fee for more efficient data sharing.
Additionally, Climate-related risks dominate the list of potential property issues that matter most to lenders and their clients. When asked to select up to three property risks, climate change and flood risk is cited by 45% of respondents. Coastal erosion follows closely, at 43%, while local planning issues are highlighted by 40% of lenders.
Mike Holden, divisional director of growth at Landmark Information Group, said: “What we are seeing in the latest lender research is a clear shift in focus. Regulation has not disappeared as a concern, but it is no longer dominating priorities. Instead, lenders are focused on addressing the practical inefficiencies that slow transactions and drain productivity.
"Lenders are increasingly turning to digitisation, automation, and AI to manage these pressures. While progress in sustainability and risk management remains vital, the overwhelming consensus on data sharing reinforces the need for a systemic fix. This is where Project 28 becomes essential, moving beyond individual tools to fix the process as a whole and finally deliver the speed and certainty the market requires.”
