Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Client Retention Rates Fall Below 50% for Some Mortgage Brokers

Some mortgage brokers are now experiencing client retention rates below 50%, according to a report by Mortgage Solutions. This means that fewer than half of clients return to their broker when their current mortgage deal ends.

The report highlights that this is not necessarily due to client dissatisfaction, but rather a structural issue within many mortgage businesses. With 1.8 million fixed rate mortgages set to expire in 2026, the impact of low retention rates is significant.

For firms that have completed 500 remortgage cases over five years, industry retention rates suggest that around 250 clients may choose another provider when remortgaging. At an average case value of £1,000, this could represent £250,000 in lost revenue for a business.

The article notes that each lost client not only means a missed fee, but also missed opportunities for further protection conversations and referrals. The true cost of not having a client retention process in place can be substantial when considered across an entire client base.

The mortgage market in 2026 is described as active, with external remortgaging rising 17% to £71bn last year, and internal product transfers increasing 18% to £256bn. Despite this, many small firms do not track their retention rates and may not be aware of how many clients they are losing.

The report also points out that lenders are actively working to retain clients through competitive product transfer pricing, direct mail, renewal reminders, and digital portals. These efforts make it easy for clients to stay with their lender, often without further engagement with their original broker.

For letting agents and inventory clerks, these trends in the mortgage market may influence client behaviour and the overall property landscape, as clients may be more likely to switch providers or remain with lenders due to convenience and targeted retention strategies.