AI and Your Mortgage Search: Why Buyers Should Tread Carefully

Artificial intelligence has become part of everyday life for many of us, from drafting emails to planning holidays, so it should come as no surprise that prospective home buyers are turning to it for help too.

A recent survey commissioned by a nationwide home builder has revealed that almost a quarter of buyers now use AI tools to carry out research before they even begin house hunting in earnest. The findings, however, suggest that anyone relying solely on these tools could be setting themselves up for disappointment, or worse, costly mistakes.

The survey, which polled more than 1,000 buyers, found that AI is most commonly being used to check how much someone could borrow, to find information on current interest rates, to clarify mortgage jargon, and to understand the overall home buying process. On the face of it, this seems sensible. Mortgages can be confusing, the language can feel impenetrable, and the prospect of speaking to a human adviser can be daunting for first-time buyers in particular. AI offers a quick, free, and seemingly knowledgeable alternative.

The problem, as the research demonstrates, is that the information these tools provide is not always accurate.

A spokesperson for the home builder behind the survey explained that calculating affordability is one of the most complex parts of buying a property, with many factors involved. While AI can serve as a useful starting point, it has been known to make basic calculation errors and, more worryingly, to hallucinate or invent figures entirely. The same concerns apply to interest rates, where AI can provide a helpful overview but cannot be trusted to deliver accurate, real-time figures.

To test this in practice, the researchers put the same question to several popular AI tools including Copilot, ChatGPT, and Grok. The scenario was a first-time buyer in the UK earning £41,000 a year, with a £54,000 deposit, looking at properties around £230,000. Each tool was asked to assess affordability, suggest how much could be borrowed, outline mortgage options, and recommend next steps. Despite being given identical information, every AI tool produced a different answer. Affordability expectations varied, as did recommendations on whether a two-year or five-year fixed term mortgage would be the better option.

For buyers in our town this is an important reminder. The Rugby property market has its own character, with a mix of period homes, new build developments, and family properties spread across the town and the wider area. Affordability calculations that fail to reflect local property values, council tax bands, or the realities of the regional market can lead buyers down the wrong path entirely. Someone might be told they can afford a home that, in practice, lies outside their genuine budget once all the local costs are factored in. Equally, they might be steered away from properties that would actually be well within reach.

This is where professional advice becomes invaluable. A qualified mortgage adviser will look at your income, your outgoings, and your credit profile in detail. They have access to a wide range of lenders and can provide a realistic borrowing figure based on current lending criteria, not on assumptions or out of date information scraped from the internet. They will also help you understand how changes in interest rates or your personal circumstances might affect your options further down the line. That kind of tailored, accountable advice is something an AI tool simply cannot replicate.

At Ellis Brooke, we work closely with Matt Clarke Mortgage Services, who we are happy to recommend to buyers looking for clear, professional mortgage guidance. Matt and his team have a strong understanding of the local market here in Warwickshire and can provide the kind of detailed assessment that gives buyers confidence at every stage of the process. You can reach Matt Clarke Mortgage Services by visiting www.mattclarke.org.uk or by calling 01788 578 000.

None of this is to suggest that AI has no place in the home buying journey. It can be a perfectly reasonable way to get a basic understanding of unfamiliar terminology, or to read up on the general structure of the buying process before you speak to professionals. The danger lies in treating its output as gospel. A figure produced by an AI tool, no matter how confidently it is presented, is not the same as a genuine mortgage agreement in principle from a lender. A general explanation of interest rates is not the same as advice tailored to your specific situation in a specific part of the country.

Our advice to anyone considering a move in the local area is simple. Use whatever tools help you to feel informed, but make sure the decisions that really matter are based on conversations with people who know the market, know the lenders, and know your circumstances. The home buying process can be unpredictable enough without adding inaccurate information into the mix.

If you would like to talk through your buying plans, discuss the local market, or arrange an introduction to a trusted mortgage adviser, the Ellis Brooke team would be delighted to help. You can reach us on 01788 221 242 or by emailing info@ellisbrooke.co.uk.