Budget 2026: What It Means for Mortgage Lenders | Digital Disruption Podcast

From Digital Disruption · 23:36

Show by Novus Strategy

Budget 2026: What It Means for Mortgage Lenders | Digital Disruption Podcast The Budget is trying to make bank capital go further so lenders can lend more. That capital only becomes lending if your mortgage journey can carry more cases, and a lot of today's capacity goes on handoffs that stall and cases that never complete. Around 30% of property transactions fall through (GOTO Group and the Council for Licensed Conveyancers). In this episode of the Digital Disruption podcast, Pete Gatenby and Chris Williams, Partners at Novus, break down Budget 2026 and what it means for UK mortgage lenders, and also cover what the Budget's AI measures signal for lenders putting AI into the journey. Chris's case: the friction sits in the handoffs, between firms and between teams inside the lender, where work that takes minutes can wait days in an inbox. Taking it out releases capacity now, and the same work lays the data foundation for Smart Data and AI. Lenders joining up those handoffs with brokers, conveyancers and suppliers are building their Horizontal Digital Integration strategies. Pete picks out two AI measures in the Budget: the Financial Policy Committee has been asked to examine the financial stability risks of AI, and £40m will fund a national capability to respond to security incidents involving AI agents. His point for lenders: AI is only as good as the data and the workflow it is given. Five things for lenders to act on: → Find the friction in your journey and take it out, starting with the handoffs between teams and between firms. → Prioritise and sequence the work for your own journey. There is no single blueprint. → Stop waiting for mandates. The national Digital ID scheme has gone, so agree with brokers and conveyancers how an identity check made once can be reused. → Get your data ready for Smart Data now, so you can use sources such as HMRC data if and when they reach Open Finance. → Redesign the workflow before you add AI agents to it. AI layered onto today's process keeps the same wasted steps. Chris goes further in his executive briefing, "Budget 2026: what it means for UK mortgage lenders": https://events.novus-strategy.com/en-gb/budget-2026-executive-briefing Watch Chris's Budget bulletin: https://www.youtube.com/watch?v=24k2sSi3G0c Pathfinder by Novus builds a digital twin of your mortgage journey. Novus practitioners run it so you can see where value is trapped across the mortgage journey, test how to unlock it, and model the impact before you invest. There will be no big bang. In Chris's words, "what needs to be true is already true": the data and the technology exist, and the reform roadmap is published. The lenders starting now are designing the workflows they will scale on. Chapters 0:00 Welcome 0:34 Chris's read on the Budget 2:40 Why extra capital needs a journey that can carry more cases 4:54 Where friction sits in the journey 7:11 What friction costs a lender 8:33 Digital ID, HMRC data and what they tell lenders 11:54 How a check done once gets relied on by everyone 13:30 What needs to be true 15:26 AI in the Budget 18:32 Redesign the workflow before adding AI 22:42 Close Pete Gatenby is a Partner at Novus Strategy and leads its AI Practice, focusing on AI capability and digital infrastructure across the UK mortgage and home buying market. Chris Williams is a Partner at Novus Strategy and leads its strategy and transformation practice, working with UK lenders and building societies on where to invest across the mortgage journey. Suggest a topic for a future episode: [email protected] Subscribe to the Digital Disruption newsletter: https://events.novus-strategy.com/newsletter-sign-up Learn more at novus-strategy.com #DigitalDisruption #Budget2026 #MortgageLending #UKMortgages #SmartData #HDI #AI #FinancialServices

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