AI – Artificial Intelligence – is much in the news at the moment with lots of speculation about AI systems such as ChatGPT and how they’re going to change our working lives, society and how we live.
We all think in terms of AI in science fiction terms, Terminator & Skynet for example feature in Hollywood apocalyptic visions of a dystopian future where mortgages are the last thing on the lead characters’ minds! But in reality, AI has already been used as a tool within the financial sector for some time. It helps merchant banks assess which way interest rates sre going to move and analyse large amounts of data to make better policy decisions on who, how & where to lend money to people for their mortgages to buy houses.
So where do we think AI is going to impact on your future searches for the ideal mortgage? And do we think AI spells the end for your skilled, friendly, local mortgage broker? [Tip: keep on reading to find out what AI isn’t quite so good at]
The Rise of AI in Mortgage Lending
AI has been working quietly behind the scenes with large lenders and it helps inform their decision making process by analysing & helping lenders assess applications, evaluate risks, and make lending policies. By crunching massive amounts of data and spotting complex patterns, AI systems provide valuable insights that make mortgage lending smoother and more accurate than ever. Crucially, that lowers costs so the lenders can be more competitivce when setting mortgage interest rates which filters through to cheaper mortgae repayments for you.
Smoother Loan Approvals
Ah, the dreaded paperwork and waiting game associated with loan approvals. But fear not! AI swoops in to save the day. With its superpowers, AI-powered systems can automate tasks like verifying documents, scoring creditworthiness, and analyzing income.
This means less hassle, faster approvals, and fewer chances of human error. Who wouldn’t want that? Or then again, you could use an underwriting broker who will check your documents and works closely with the lending underwriters to make sure you get the best deal and everything proceeds as smoothly as possible with no ‘computer says no!’ moments…
Let’s Talk Ethics
As cool as AI is, we can’t forget about fairness and transparency. It’s a core part of what we do and as an Industry, Mortgage Brokers are closely regulated. It’s a core part of how we operate here at Martland Mortgages .com Ltd, we believe in treating customers fairly – that’s why we ask for so much information so we can be sure of getting you the best, most appropriate mortgage deal out there!
It’s essential to keep a close eye on these AI algorithms, so they don’t perpetuate bias or discrimination. Regular audits and fine-tuning are vital to ensure that AI systems are fair, unbiased, and provide equal opportunities for all borrowers. After all, we want everyone to have a fair shot at their dream home!
Now the interesting thing here is that those three paragraphs were actually written by an AI, chatGPT to be honest. But it still needed some editing to be readable to a human. And mortgages are no different. We have decades of experience in understanding the real, human circumstances behind each application and we understand exactly how your circumstances are viewed by all the different High Street & off-the-High-Street lenders out there. Would you trust an AI to make the right choice?
Still not sure? We asked an AI to generate this little poem about moving house… Dull isn’t it? Just another reason to trust the skilled & experienced mortgage broking humans here at our offices in Southport rather than a faceless AI in the Cloud…
In a land of houses, humble and plain,
A move is underway, with little fanfare or acclaim.
Boxes piled high, belongings in tow,
Leaving behind the old, with nowhere to go.
Farewell to familiar rooms, devoid of zest,
As we embark on a change, leaving comfort for the rest.
A new abode awaits, a mundane transition,
In search of a place with little distinction.
From one spot to another, we make our way,
Seeking a dwelling where we’ll simply stay.
The moving van trudges, slow and steady,
Carrying our possessions, heavy and unsteady.
Unpacking our lives, in a monotonous chore,
Creating new memories, as we settle on this shore.
A new chapter begins, with no vibrant hue,
Just a house that feels ordinary and true.
So here’s to the move, unremarkable and dull,
A journey of sameness, with no grandiose lull.
For it’s not about the place, but the life we make,
In this mundane house, our path we undertake.