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 the Landmark Information Group.

Process inefficiency has overtaken regulation as the main frustration for lenders, with 45% of a lender’s working day in 2025 was spent chasing or being chased by stakeholders for updates, up from 32% in 2024. With 40% of respondents citing long transaction times as their greatest frustration when asked to select their top three.

Mike Holden, Divisional Director of Growth, 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.”

The use of AI has quickly become a mainstream part of how the industry operates and over the past 12 months optimism towards AI and automation has soared as in 2024 43% of respondents thought AI would have minimal impact on their work in the next five years, whilst in 2025, that viewpoint has dropped to just 3%.