Why technology is key for customer retention in 2025

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 of 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, the product transfer has slowly become quite fashionable among borrowers. And it’s a trend that’s set to continue. Don’t take just my word for it – in 2025, UK Finance predicts that product transfer volumes will spike by 13%, accounting for a massive £254bn in lending.

So the product transfer is more than 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 a precedent for it. All the way back in Q2 2023, 84% of remortgagers chose to stick with their current lender instead of moving to an alternative provider, so it’s not an isolated phenomenon. It’s a consistent trend, one that announces the product transfer as a secret weapon in the lender toolkit.

Benefits of a product transfer

What is driving the surge in customer demand for product switch? Let’s start here: there’s enough stress in people’s lives today. If they can get a low-stress option for a reasonable price, they will always choose it – providing the quality is still there. However, a product transfer is more than an easy option. Let’s break it down a little.

First, there’s a matter of expenses. If a customer chooses to switch to a mortgage product at another bank, there will naturally be valuation and legal fees. But if a customer sticks with their current lender and switches to a different product, they can avoid most of those costs.

There are other factors at play, too. A product transfer can help a borrower avoid reversionary rate penalties, which is always attractive to most borrowers. And there’s the added bonus of less paperwork. When a borrower stays with their original lender, there is no need for any induction or affordability checks; the lender already has the borrower’s information on file.

A product transfer is a great option for certain buyers. Of course, every buyer has different needs. But if a borrower is looking for an efficient switching process with a speedy turnaround, then a product transfer is well-placed to deliver.

In other words, a product transfer can help the customer while also enabling the lender to improve their retention rates. The technical term is a win-win.

So how can a customer retention portal help?

And here is where an online solution can help. Last year, our research discovered that 47% of homeowners have tried an online product switch. In the sample, 50% were aged between 18 and 24. But we also found that over 20% of customers over 55 used a digital product switch tool as well. More people than ever are logging on to product switch, and all of them are drawn to the same crucial selling point: you can finish the entire application in 10 to 15 minutes.

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

A streamlined and user-friendly retention portal will be key to success. For instance, my team at finova has been developing a secure online customer retention portal for some time now. Fully powered by our Apprivo originations platform, it is designed to help lenders give customers a smooth transition to a new mortgage product once their original term ends.

One of our portal’s key selling points is that it empowers customers to self-serve. Customers like self-serving. It gives the individual a sense of ownership over the product switch process, and they can even self-select their switch date. For the lender, a self-serve product switch is a boon for efficiency. It reduces back-office origination, cutting down on workload for the underwriters.

Perfecting the offering

Our team has been in the mortgage software business for a while, and our leading developers have picked up a few tips over the years. We know that both lenders and borrowers stand to thrive when a retention portal is secure and easy to use. That means paying attention to the details.

For example, our own retention portal is fully mobile responsive, meaning it is fully functional on all devices anytime, anywhere. We have invested in data protection, ensuring that customer information is safeguarded behind multiple layers of ironclad encryption and multi-factor encryption. Borrowers value convenience and trust; a well-made tech solution can offer both.

But it’s not only borrowers who stand to benefit. A top-shelf retention portal will be fully configurable. It will allow lenders to customise the portal with their own branding. And it will slot into the lender’s existing systems with a seamless integration process.

What’s the outlook for retention?

Over the past three years, customer retention has been a watchword for lenders, and that is unlikely to change any time soon. It is a multifaceted challenge and one that requires a nuanced solution. But the market has made itself clear: customers want convenient solutions that are both low-stress and low-cost. The product transfer delivers on both fronts; and a seamless customer portal can streamline that process for all customers of all ages.

In the end, lenders must engage in technology and work with seasoned providers who can supply tailored and high-quality solutions. If a customer has a positive experience on a modern and smooth platform, then they are twice as likely to stay on a lender’s books. It’s as simple as that.