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Is the mortgage industry ignoring Open Banking, just as the government pushes riskier lending?

Journalist: Emma Jones, When The Bank Says No

ended 17. May 2025

As the UK government nudges lenders toward riskier borrowing models (e.g. 100% LTVs, extended terms, higher borrowing multiples etc) in order to get the economy moving a the role of smart, real-time data is more crucial than ever?

So why are so few mortgage lenders embracing Open Banking. This is a proven way to speed up underwriting, reduce manual errors, and detect affordability issues early? Not only that but it protects Mortgage Brokers.....

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Editor
Rob Peters
Principal at Simple Fast Mortgage
Open Banking has the potential to modernise and de-risk mortgage lending but adoption has been sluggish. With the government encouraging higher LTVs and longer mortgage terms to stimulate the economy, more lenders should take advantage of these tools to assess affordability and satisfy underwriting requirements in real time.

Concerns around data security, integration costs, and primarily consumer trust are still holding many back. The tech is ready, but cultural and operational inertia is slow. For Open Banking to truly protect both brokers and borrowers, it needs to become the industry norm and not just a nice-to-have for a few early adopters.