The UK’s financial regulator is urging mortgage brokers to use AI and other transformative technologies to help them give better advice to those seeking financial advice.

This is part of the Financial Conduct Authority’s (FCA) plans to reform the mortgage market for first time buyers, the self employed, and current homeowners.

Innovation and disclosure will be one of the FCA’s four key focus areas. The FCA will encourage the use of data and technology such as AI, to help brokers give enhanced advice while keeping a human touch.

The FCA will also seek ways to make advertising and disclosure rules simpler, so consumers can understand information online more easily.

As well as promoting technological advances, the FCA will prioritise simplifying mortgage rules to allow more flexible products that reflect different working patterns and income levels at different stages in life.

It will also focus on later-life lending by reviewing retirement interest-only requirements to make them more accessible. This involves exploring ways to improve advice to help people confidently plan for later life, conducting a focused market study to ensure the lifetime mortgage market can meet the changing needs of future customers.

The FCA will also seek to protect vulnerable consumers, working with partners to support people affected by financial abuse and help those using a mortgage to manage or consolidate debt.

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“We have worked at pace this year to improve outcomes for customers wanting a mortgage. We’ll use insight from consumers and industry to drive further reforms and rebalance risk – helping to widen access to affordable mortgages to meet the needs of consumers today,” David Geale, executive director for payments and digital finance, said.

“Reforming the mortgage market can help address the fact that as a society we’re saving too little for later life, yet people have huge wealth tied up in property.”

The FCA will start to consult the public on proposed rule changes in the four areas from early 2026 and aim to have the first rule changes in place later that year.