Process inefficiency overtakes regulation as lenders turn to AI, Landmark research finds
New research from Landmark Information Group shows UK mortgage lenders are increasingly frustrated by slow, inefficient processes, prompting a sharp shift towards AI, automation and better data sharing.
New research from Landmark Information Group reveals that 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.
However, the findings also show a clear shift in lender priorities, with process inefficiency now overtaking regulation as the biggest operational frustration.
In 2025, nearly half of a lender’s working day, 45%, was spent chasing or being chased by stakeholders for updates, up from 32% in 2024.
As a result, 40% of lenders now cite long transaction times as their greatest frustration, replacing regulatory and administrative burdens, which dominated concerns last year.
To address these inefficiencies, lenders are increasingly turning to technology. Nearly half of respondents, 48%, said they are prioritising investment in AI solutions to automate tasks and optimise workflows.
When asked which factors would have the greatest positive impact on productivity and business success, 45% highlighted the effective use of artificial intelligence to automate routine tasks.
Attitudes towards AI have shifted rapidly over the past year. In 2024, 43% of lenders believed AI would have minimal impact on their work over the next five years. In 2025, that figure has fallen to just 3%, reflecting growing confidence in automation as a practical tool rather than a future concept.
Despite this momentum, barriers remain. Legacy technology or limited IT capacity and budgets were cited by 63% of lenders as a key constraint, while 55% pointed to data quality or completeness issues and 48% raised concerns around security, privacy and compliance.
Even so, there is strong alignment across the sector on the need for better data sharing, with 98% of respondents agreeing that a secure, interoperable data repository would help address systemic inefficiencies and reduce transaction times.
The push for a more streamlined process extends beyond lenders. Landmark’s cross-industry initiative, Project 28: A Charter for Faster, More Certain Property Transactions, has brought together agents, conveyancers and lenders to commit to reducing the time from sale agreed to exchange to 28 days, compared with a current average of 120 days.
Consumer research also shows that many homebuyers and sellers would be willing to pay an upfront fee to benefit from more efficient data sharing.
The research also highlights how sustainability has become embedded within lender operations. In 2025, 98% of lenders said sustainability is important to their organisation and confirmed that policies are in place and followed, up from 74% the previous year.
Climate-related risks dominate lender concerns, with 45% citing climate change and flood risk as a key property issue, followed by coastal erosion at 43% and local planning issues at 40%.
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.”
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