The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Landmark Information Group’s 2026 Residential Mortgage Lenders Market Research Report provides authoritative insight into the priorities of senior leaders for 2026, highlighting where the next sources of competitive advantage are expected to emerge.

As the industry navigates changing market forces and rapid innovation, Landmark’s latest market research report – Residential Mortgage Lenders: Challenges and opportunities for 2026 – provides a timely snapshot of lender priorities and emerging trends. It delves into the shifting landscape, highlighting the strategies and technologies shaping the future of residential lending in the UK.

Key findings for 2026

• 40% say the length of transactions is now their top frustration, overtaking regulation.
• 75% believe AI will enhance customer engagement; 68% expect it to improve data analysis and decisioning.
• 85% view differentiation as essential to success (up from 59% in 2024).
• 98% now use property risk data (via AVMs/VRM) to inform valuation decisions.
• 98% have sustainability policies in place, signalling near‑universal adoption.

Fixing the system, not the symptom

Lenders are not merely pursuing incremental improvements within a fragmented operational framework; they are fundamentally reengineering their processes to enhance efficiency. Investment priorities have pivoted to what materially moves the dial on speed and certainty: AI to automate routine tasks, digitised workflows, and better technology across the board. 

Nearly half (48%) are actively investing in AI to optimise operations, with a further focus on training and process digitisation to unlock consistent, scalable gains. The aim is clear: fewer manual hand‑offs, less re‑keying, and faster, more confident decisions for borrowers.

The differentiation imperative

In a highly competitive market, undifferentiated propositions are no longer sufficient. Lenders are increasingly focusing on strengthening their brands and driving product innovation, broadening the scope of their services, and tailoring their offerings to meet the needs of specific customer segments. 

This strategic shift is not solely aimed at acquiring new business; a more positive perception of the sector, enhanced technological capabilities, and clearly defined career pathways are now recognised as critical factors in attracting and retaining talent. Elements that are essential for sustained growth.

Data flow: unlocking speed and certainty

Legacy systems and data silos are still holding the industry back. Secure, interoperable data sharing across the transaction would improve efficiency, and almost all lenders (98%) agree that a shared digital repository would help. With initiatives like the Project 28 Charter gaining momentum, there is genuine impetus for industry‑level change that could shorten timescales and reduce fall‑throughs.