Mortgage lenders are increasingly focusing on technology and process reform as economic pressures continue to weigh on the sector, according to new research from Landmark Information Group.
The study found that 88% of lenders see the economic climate, interest rates and the cost of living as a major or moderate concern.
Despite this, priorities are shifting, with process inefficiency now overtaking regulation as lenders’ biggest frustration.
In 2025, lenders spent an average of 45% of their working day chasing or responding to updates from stakeholders, up from 32% in 2024.
TRANSACTION TIMES
As a result, 40% cited long transaction times as one of their top frustrations, replacing regulatory and administrative burdens, which dominated concerns last year.
To tackle these challenges, lenders are increasingly turning to technology. Nearly half (48%) said they are investing in artificial intelligence to automate tasks and improve operational workflows, while 45% identified the effective use of AI as one of the biggest potential drivers of productivity and business success.
Attitudes towards AI have shifted sharply. 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%.
“Progress is being held back by legacy systems and limited IT budgets.”
However, progress is being held back by legacy systems and limited IT budgets, cited by 63% of lenders, alongside data quality issues (55%) and security or compliance concerns (48%). Almost all lenders (98%) agreed that a secure, interoperable data repository would help address the systemic inefficiencies slowing transactions.
The findings also highlight growing alignment across the wider property industry.
Landmark’s Project 28 initiative aims to cut the time from sale agreed to exchange to 28 days, compared with a current average of around 120 days, with consumer research suggesting many buyers and sellers would pay upfront for faster, more certain transactions.
Sustainability has also become embedded across lender operations. In 2025, 98% of lenders said sustainability is important to their organisation, up from 74% a year earlier. Climate-related risks now top lenders’ concerns, with 45% citing climate change and flood risk, followed by coastal erosion (43%) and local planning issues (40%).
SHIFT IN FOCUS
Mike Holden (main picture, inset), Divisional Director of Growth at Landmark Information Group, says: “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.”
