How the fintech boom transformed the mortgage journey over the last 20 years

Since the pandemic, the mortgage industry has stood at a pivotal moment where transformation meets opportunity. Technology, once a nice-to-have, is now driving resilience, innovation, and growth across the sector. For fintech leaders, understanding how the mortgage journey has evolved and where it is headed is key to identifying opportunity in a market defined by shifting consumer expectations, economic and geopolitical uncertainty, alongside fierce competition.

Technology is reshaping the entire homebuying experience and the mortgage market is finally starting to keep up with other consumer finance sectors - representing both a challenge and opportunity for fintech leaders to drive innovation.

A world away from 2005

Rewind twenty years, and the typical UK mortgage application looked very different. It was slow, stressful, and buried in paperwork. Physical applications, in-person appointments and long waiting times were the norm. There was no digital trail and getting a mortgage almost always involved mountains of paperwork and tedious manual tasks.

When Finova was founded, SaaS and cloud technology were still in their infancy, particularly in financial services. Digital platforms existed, but they often lacked agility and flexibility. Our founders often saw digital tools with impressive features, but few could keep up with the pace of change or the growing demands of compliance and customer service.

Then came the 2008 financial crisis, which marked a turning point. Innovation was put on pause as the industry shifted focus to stability and control. The development of new technology slowed down and many legacy systems lingered far longer than they should have, leaving opportunities for fintech-driven transformation largely untapped.

Out with the old and in with the new

Fast forward to today and fintech has redefined the mortgage journey. The typical borrower now has access to seamless, intuitive digital experience in every aspect of their life,  whether they’re ordering groceries, streaming entertainment, or making a contactless payment. Naturally, they’ve come to expect the same ease and speed when applying for a mortgage. For CTOs, this raises the bar: mortgage platforms must deliver the same level of speed, simplicity and transparency to remain competitive.

Today’s mortgage journey can include everything from automated affordability checks, e-signatures, real-time updates and faster decisioning. It's not just about streamlining operations for lenders and brokers, but it's equally important that we’re giving customers the transparency, convenience and control which they expect. And with intermediaries continuing to account for the vast majority of UK mortgage distribution, platforms must be designed to support brokers as much as they do lenders and customers.

In Q1 2025, UK mortgage lending volumes reached £77.6 billion, up 50.4% compared to the same period the previous year. However, technology investment hasn't always scaled at the same pace as demand. This imbalance highlights the importance of platforms that can keep up with volumes, improve throughput, and continue to evolve with market needs.

Those who fail to meet these expectations risk falling behind, and in a world where everything is connected, agility is no longer optional.

Where does AI fit in?

No conversation about the future of the mortgage market or technology is complete without discussing the potential impact of artificial intelligence (AI). In fact, according to the Bank of England, 75% of financial services firms are using AI, with 10% more planning to do so over next 3 years. For years, AI in the sector has largely focused on speeding up admin tasks, whether that’s extracting data from forms, automated back-office processes or minimising paperwork. That’s not quite the case anymore, and the industry is starting to explore more progressive applications of AI, even if the transformation process is more gradual than many expect.  

For example, we may see the technology play a much larger role in facilitating credit reference agency interfaces and valuation processes. It is still early days, and there are golden opportunities to leverage AI to ramp up efficiency. If applied with care, it can support lenders assess risk, flag potential issues, and make accurate, fair decisions in a fraction of the time, all without compromising on customer service or compliance.

That said, the transition won’t be overnight. Adoption has been gradual, with careful consideration around data, regulation and trust.

Flexibility remains paramount

If there’s one lesson we can take from the last 20 years, it’s that being rigid has no place in the current market. Whether it’s rate changes, new regulations, or evolving consumer behaviour, the ability to pivot quickly is crucial.

That’s why any fintech platform today must be built with flexibility at its core. Lenders that embrace technology to simplify everyday processes and elevate the customer experience are the ones that will truly stand out. Whether that’s integrating seamlessly with sourcing tools or working closely with brokers to meet evolving borrower needs, in today’s highly competitive market, speed matters. The faster a lender can deliver a smooth, efficient service, the better their chances of winning and retaining customers.

Tech forms the backbone of successful operations

Ultimately, the more digital an end-to-end process is, the easier it is to service customers and remain compliant. In a post-Consumer Duty world, lenders must be able to demonstrate that they’ve taken the right steps to deliver fair, transparent outcomes.

From real-time affordability assessments to automated alerts for vulnerable customers, digital platforms help lenders and intermediaries make better, faster decisions while reducing risk. Using dynamic, rules-based decision engines, they can process applications with consistency and confidence.

Meanwhile, customers benefit from being able to submit mortgage information through intuitive, secure interfaces. And brokers gain access to tools that reduce duplication, track client status, and free up time for advice that adds real value.

For CTOs and fintech professionals, the takeaway is clear – mortgage success is no longer defined by interest rates or distribution channels, but by the sophistication and scalability of the technology behind the process.