It’s a stressful world and the UK mortgage market is no exception. Lending volumes are suppressed, competition is heating up and every lender is vying for new business, so it’s no surprise that customer retention is an urgent priority for all lenders.

Right now, 1.8 million UK homeowners are staring down the barrel of a remortgage deadline and many lenders will be hoping to retain as many of their current customers as possible. However, retention can be complicated. In a competitive market, UK homeowners can access a vast range of options. Lenders cannot depend on retention through sheer inertia; they need to make a robust case to persuade their customers to stay.

Over the past two or three years, product transfers have steadily gained traction among borrowers and the trend is set to continue. Don’t just take my word for it, UK Finance predicts that product transfer volumes will spike by 13% in 2025, accounting for a massive £254bn in lending.

So, the product transfer isn’t just another item on the menu, it’s a gigantic business opportunity and one that lenders cannot afford to overlook. And what we know about product transfers is that customers like them because they’re convenient, simple and relatively hassle-free.

There’s already a precedent for this. In Q2 2023, 84% of remortgagers chose to stay with their current lender, rather than move to an alternative provider. This isn’t an isolated phenomenon, it’s a consistent trend, making the product transfer a secret weapon in the lender toolkit.

What’s Driving the Product Transfer Boom?

Why is customer demand for product switches surging? Let’s start here: people already have enough stress in their lives. If they can access a low-stress option at a reasonable price, they will take it, provided the quality is still there. But a product transfer is more than just an easy option. Let’s break it down.

• Cost Savings: Switching to a mortgage product at another bank typically comes with valuation and legal fees. But sticking with a current lender allows borrowers to avoid most of those costs.
• Avoiding Reversionary Rates: A product transfer helps borrowers avoid unnecessary penalties and stay on a competitive rate.
• Less Paperwork: A borrower who remains with their lender doesn’t need a fresh affordability check, as their financial details are already on file.
• Speed and Simplicity: The process is significantly quicker and easier compared to a full remortgage.

For borrowers, a product transfer is convenient, cost-effective and seamless. For lenders, it means higher retention rates and operational efficiencies. It’s a win-win.

How Can a Digital Retention Portal Help?

And here’s where technology steps in. Last year, our research found that 47% of homeowners used an online product switch tool. Half of these users were aged between 18 and 24, but notably, over 20% of customers over 55 also opted for a digital switch.

More borrowers than ever are embracing online tools for product switching, drawn to a crucial selling point: the entire process can be completed in just 10 to 15 minutes.

We now know that customers of all generations are open to using an online platform for a product switch. So, how can we make that process as appealing as possible?

A streamlined, user-friendly retention portal will be key to success. For instance, at finova, we’ve been developing a secure online customer retention portal powered by our Apprivo originations platform. It’s designed to help lenders provide a seamless transition to a new mortgage product once a customer’s original deal expires.

One of the portal’s key features is that it allows customers to self-serve. Borrowers value self-service because it gives them ownership over the switching process—even allowing them to select their own switch date. For lenders, a self-service approach improves efficiency, as it reduces the back-office workload for underwriters.

Perfecting the Offering

We’ve been in the mortgage software business for a while and our development team has learned a few lessons along the way. Both lenders and borrowers stand to benefit when a retention portal is secure, user-friendly and efficient.

That means getting the details right:

• Mobile Responsiveness: Our retention portal is fully optimised for all devices, ensuring customers can access it anytime, anywhere.
• Security: Data protection is critical and we’ve built multiple layers of encryption into the system to ensure customer information remains secure.
• Customisation for Lenders: The platform allows lenders to fully brand the portal, ensuring seamless integration with their existing systems.

Borrowers expect convenience and trust, a well-built retention solution delivers both.

What’s the Outlook for Retention?

For the past three years, customer retention has remained a watchword for lenders and this won’t change in 2025. Retention is a complex challenge, requiring carefully designed solutions.

However, the market has made itself clear: customers want mortgage solutions that are low-cost, low-stress and easy to access. Product transfers tick all these boxes and a modern digital portal ensures the experience is seamless for all borrowers.

Lenders must invest in technology and digital transformation to keep pace with changing expectations. A smooth, efficient customer journey can significantly boost retention. If a borrower has a positive digital experience, they are twice as likely to remain with their lender.

It really is that simple.

Book a demo today to see how Apprivo can transform your customer retention strategy and keep more customers on your books.

Chris Little, Chief Revenue Officer, finova