Artificial Intelligence (AI) has become part of our daily lives, often without us really realising.
For example, every time you open your phone using biometric face recognition, use a digital assistant like Siri or Alexa, or open up Google Maps, then you’re using AI.
While AI can be useful in many situations, there are some circumstances in which you should proceed with caution.
According to MoneyMarketing, almost a quarter of Brits have used AI for mortgage advice, although just 7% said they were very confident in the accuracy of the information they received.
The research also uncovered the fact that, when the same information was entered into different AI platforms, significantly different recommendations were generated.
While AI tools can be good for basic research or to understand jargon, using them to give you specific mortgage advice could backfire spectacularly.
1. No legal accountability
AI tools like ChatGPT and Gemini can “hallucinate” false information, but present it with such absolute confidence that it’s easy to believe it’s correct.
However, if you use an AI bot to calculate complicated mortgage details and it gets it wrong, there’s no legal recourse for you to complain.
Speak to a human adviser, and you’ll have the reassurance that they’re regulated by the Financial Conduct Authority (FCA) and have insurance. This means if you’re given incorrect or negligent advice, you are protected.
2. Lack of nuance
AI platforms talk to you in a way that makes them feel real. But they are just feeding you information from data they have scanned. This doesn’t account for the inevitable complexity of real-world circumstances and individual preferences.
Your finances don’t just start and end with numbers on a page, which is what AI will look at. You may be self-employed with an irregular income, have a bad credit history, or have very specific requirements for your mortgage.
A financial planner matches your situation with the right lenders, because they know which will work best for your own unique circumstances and long-term goals.
An AI bot will simply perform calculations, and even these aren’t guaranteed to be correct.
3. No access to exclusive deals
A very large proportion of the UK mortgage market is invisible and inaccessible to AI tools.
According to Mortgage Strategy, in 2024 brokers accounted for 87% of all mortgages written in the UK, a figure which is expected to rise to 91% in 2026.
However, if you use an AI bot, it will be unable to integrate with a high number of databases, which means it will miss exclusive products and niche loans which aren’t openly published. In turn, this means that you could be missing out on a much better type of mortgage product if you confine yourself to the narrow choices given by AI.
A professional planner, however, will be able to gain deep access to rates and deals that AI won’t be able to even see.
4. Security and privacy concerns
Asking AI for mortgage advice will mean entering some sensitive and private financial details, including things like your salary, any debts, and personal information.
While a financial planner will be held to high standards in terms of data privacy under the General Data Protection Regulation (GDPR), AI has no such regulation, and your data could suffer from a serious breach.
5. US defaults
According to Wealth Investment News, most AI tools struggle to provide UK-specific guidance, often defaulting to US references, rules, and products.
It doesn’t have enough capability to explore the nuances of UK income structures or affordability criteria. And because AI always gives you an answer, instead of simply saying “I don’t know”, the bot will give you a US-focused reply without making this apparent.
Get in touch
If you’d like to find out more about how we could help you with your mortgage needs, please get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100. We’re always happy to help.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.