Realtor demand for smart technology is growing but AI is dividing opinion – Real Estate Strategy

Almost nine in ten (89%) sellers want technology to play a bigger role in streamlining the loan application process, up from 74% six months ago, according to new research by Nottingham Building Society.

A recent survey of 500 brokers nationwide, found that nine out of ten (90%) see lenders successfully using technology to support brokers and improve the end-to-end mortgage journey.

But the findings suggest that the debate continues from whether technology has a place in mortgages, to how much of a difference it can make. Vendor responses suggest they are looking for systems that reduce friction, improve visibility and help lenders assess situations where standard affordability models don’t fit.

A third of consumers (33%) say better management of complex or unusual situations is where technology improvements will have the most positive impact. The same ratings pointed to clear tracking of case progress (33%), better integration between consumer and lender systems (32%), and faster results of regulatory decisions (32%).

Almost a third (32%) say reducing manual filing will improve their ability to file cases. The same proportion (31%) say consistent underwriting decisions can make a positive difference.

Nottingham BS research reveals a cautious view from consumers on the role of AI.

One in three say they would be comfortable seeing greater use of AI or automation in document verification and management (33%), affordability assessment (33%), vendor communications (33%), case prioritization and triage (32%), customer journey updates and tracking (31%), and revenue and expense analysis (31%).

Consumers see some areas where AI can help the market. More than a fifth (22%) say AI can have a major positive impact on supporting regulatory and compliance checks, while almost a fifth on supporting borrowers with multiple income streams (21%) and better definition of income and expenses (20%).

However, marketer sentiment towards AI has changed. By 2025, 28% of consumers fully support AI playing a key role in the loan application process, while 30% said AI should have a role but be properly managed. By 2026, 33% now say they are comfortable with greater use of AI or automation in parts of the mortgage journey, indicating a slight increase in adoption of real-world AI use cases.

At the same time, some doubts remain. By 2026, 20% of marketers say AI will not have a positive impact on the loan process. This compares to the sentiment of 2025, where 18% said they had concerns about the use of AI in the mortgage lending process but were open to exploring it, 12% said they wanted to see AI used only if they were sure it was safe and properly regulated, and 8% said they did not believe AI should be involved in the mortgage lending process at all.

The survey also found that a third of consumers (33%) believe that clear rules on the use of AI in the loan application process could be government or regulatory changes that are most likely to support the UK housing market.

Commenting on the latest research Nottingham BS lending officer Aaron Shinwell said: “Technology is already making parts of the mortgage process more efficient, but marketers are telling us clearly where the next wave of development needs to come. It should help with the real points – borrowers with complex incomes, case visibility, reducing the time of administrative tasks and a system that can stop the full picture where the good picture is read.”

He added: “AI may have a role to play, but confidence will depend on how it is used. Marketers want tools that make the process clear and fair, transparent and overseen. The opportunity is to combine better technology with sound judgement, so that borrowers with complex financial health are assessed with the care and context that best suits their circumstances.”