By Hamza Behzad, Business Development Director at Finova
After a quieter summer, the mortgage market is back in motion. As we move through autumn, the long-anticipated remortgage wave is well underway, and it’s proving to be larger than many expected.
UK Finance forecasts show that remortgaging activity is set to rise by 30% this year, reaching an estimated £76 billion. That projection is already coming to life. Data from Legal & General shows a 34% rise in broker searches for remortgage products in Q1 2025 compared with Q4 2024.
Since mid-2024, with multiple rate cuts from the Bank of England, borrowers are actively reviewing their options. For many households, lower monthly payments are providing some welcome relief after a long period of financial pressure. But for lenders, this renewed activity brings a familiar challenge: how to retain customers who are more price-sensitive and more willing to switch than before.
A new phase for retention
Over the past five years, customer retention has become a defining theme in the mortgage market. Rising interest rates and tighter affordability rules made product transfers an attractive, low-effort choice for both lenders and borrowers.
Now, with rates easing and refinancing becoming easier, that dynamic is changing. Borrowers have more flexibility to shop around, and competition at the lower loan-to-value end of the market is fierce. The high street giants are driving a pricing battle that mid-tier and mutual lenders find difficult to match.
For these lenders, retention is no longer just a growth strategy — it’s a vital part of maintaining balance sheet strength and long-term stability. To stay competitive, the focus must shift from rate to experience.
Experience is the new rate
Today’s borrowers expect a remortgage journey that is quick, transparent, and convenient. They compare lenders not only by price but by how simple the process feels. The Financial Conduct Authority’s update earlier this year easing affordability checks for like-for-like or cheaper remortgage deals has helped, but friction still remains in many legacy systems.
This is where technology has the power to make the biggest impact. Modern origination and servicing platforms give lenders a single, connected view of every borrower. Renewal reminders, retention offers, and communications can all be managed in one place.
When borrower data, communication channels, and workflows are joined up, lenders can anticipate when customers are nearing the end of their deal, understand their preferences, and engage at the right time with the right message. It’s a move from reacting to customer behaviour to anticipating it.
Understanding how customers want to engage
No two borrowers want the same experience. Some prefer to complete everything online, while others value a personal conversation. Understanding these preferences is key to building stronger, longer-lasting relationships.
Younger borrowers may be comfortable managing their mortgage through an app or chat service, while more experienced homeowners might prefer speaking directly with a broker or lender. What matters most is choice.
With the right technology, lenders can tailor journeys to suit each customer. A self-service renewal or a broker-guided discussion can both feel seamless when supported by connected systems. The result is a smoother, more personal experience that keeps customers engaged.
Building smarter retention journeys
Data remains one of a lender’s most valuable assets — but only if it’s easy to access and interpret. Many mutuals and mid-sized lenders are investing in modern technology that turns raw information into actionable insights. Advanced origination and servicing platforms enable lenders to:
- Identify at-risk customers early using behavioural data
- Automate timely outreach with personalised offers
- Reduce complexity by integrating internal and broker workflows
- Support Consumer Duty obligations with continuous oversight of vulnerable customers
When lenders simplify the process and personalise communication, they not only improve retention rates but also strengthen trust.
Winning through connection
As UK Finance recently observed, “For lenders unable to match the cheapest market rates, the emphasis will shift to making the remortgage process as frictionless as possible.”
In today’s market, convenience and clarity are becoming key drivers of customer loyalty. The lenders that simplify their remortgage journeys and communicate clearly will be the ones that strengthen relationships and build long-term trust.
Technology plays an important role in enabling that experience — not by replacing personal connection, but by supporting it. When data, automation, and human insight come together, lenders can deliver interactions that feel both efficient and genuinely personal.
