New research from Legal & General’s Mortgage Club shows that most consumers continue to prefer personal interaction when arranging a mortgage, despite the growing use of digital tools in everyday financial management.
The findings form part of Mortgage Club’s 30th anniversary report, Home 2055, which reveals that just 7% of consumers would feel comfortable using automated tools to arrange a mortgage, and only 5% would opt for AI chatbots.
The report was unveiled during the Mortgage Club’s 30th anniversary conference on 11th November, where FCA chief executive Nikhil Rathi urged the industry to collaborate and provide high-quality, holistic advice to support sustainable homeownership.
According to the data, more than half of consumers (58%) said they would prefer to receive mortgage advice from a person, with 45% preferring a face-to-face meeting and 12% favouring a video or phone call.
Notably, almost half of Gen Z respondents (47%) said they would choose to arrange a mortgage in person with an adviser.
The study also found that consumers continue to value holistic financial advice, with 58% preferring to receive guidance on mortgages, pensions and protection from a single trusted adviser.
Even among younger consumers, 54% of those aged 16 to 24 said they preferred all financial advice to come from one adviser, while 44% said they were not comfortable receiving mortgage recommendations with no human interaction.
Mortgage advisers largely agree that personal advice will remain essential over the next 30 years, with two-thirds (66%) predicting that face-to-face interaction will become even more important.
Around 30% of advisers identified the emotional and complex nature of mortgage decisions as the reason for this continued reliance on human guidance.
However, 40% of advisers cited disruption from digital and AI-powered platforms as their biggest concern for the future, while 41% said that developing fluency in AI tools will be vital for advisers to stay relevant.
Clare Beardmore, director of distribution and Mortgage Club, mortgage services, L&G, said: “As technology evolves, we must remember the importance of quality advice for customers, with reassurance, trust, and human connection at its core.
“It was encouraging that this emphasis on the value of quality advice was echoed by FCA chief executive Nikhil Rathi at our landmark Mortgage Club conference.
“Our research shows that, despite the rapid rise of automation and AI, borrowers still place enormous value on expert advice from a person.
“The mortgage process is not just a transaction, it’s one of the most complex and emotionally significant financial decisions a person will make.
“That is why advisers continue to play such a vital role in helping borrowers make informed decisions.
“Looking ahead, there is no doubt that digital tools such as AI will become more embedded in the advice process. But this should be about complementing advisers, not replacing them.
“The future of advice lies in a hybrid model, where technology enhances the customer experience and advisers continue to guide borrowers through the mortgage journey with empathy, insight, and personal support.
“As the market evolves, the industry’s commitment to quality, holistic advice remains essential for sustainable homeownership in the future.”
Now in its 30th year, L&G’s Mortgage Club is the UK’s largest and longest-running mortgage club. It has supported more than 56,000 brokers and is involved in nearly one in four of all UK mortgages, and almost one in three of all intermediated mortgages.
