With the recent decreases in the Bank of England base rate and more competition in the market, some mortgage brokers are reporting an upturn in re-mortgage decisions by borrowers. Not so, in the case of Principality Building Society.
In the last 3 years, Principality has seen a year-on-year improvement in its percentage of retention volume and value. CACI data shows that its retention volume has improved by 6% since 2022. In value terms, it exceeded the rest of the market retention value average in both 2023 and 2024. In 2024, the Society surpassed the rest of the market monthly volume retention in 5 of the 9 months of available data.
In England, Principality has seen year on year increases in both retention volume and value in the North-East, North-West, Yorkshire and Humberside and East of England regions. Not surprisingly, in the last two years, the Welsh Building Society has also exceeded the rest of the market volume and value retention averages in Wales.
In 2024, Principality Intermediaries re-organised its Business Development Team to commit more resources to servicing brokers for both new and product transfer business. Their commitment to improving service standards for brokers is paying off.
In 2024, Principality exceeded the rest of market averages in 6 of the 12 months in retention value for the broker channel. For volume, it maintained its achievement in 2023, exceeding the rest of the market average for 5 of the 12months, and saw a 1.5% increase in its retention volume.
Factors that are also contributing to Principality’s current success are:
- Making it easier for their brokers to re-commit at the end of their client’s fixed term, by regularly offering their most competitive rates to current borrowers
- Their standard retention range has no legal fees or underwriting considerations which can make it a more appealing option than re-mortgage
- Keen to recognise the growth in brokers’ share of the product transfer market3 and maintain the link between their borrower and their mortgage broker, they’ll refer their customer back to their broker six months and three months ahead of their fixed term end.
- If there’s a suitable product transfer option, their MSO mortgage platform which introduced product transfers in 2023, provides the broker with a quick and easy transfer experience
- Despite many other providers reverting to a three-month product transfer window, Principality is currently maintaining the six-month window which is providing customers with an early opportunity to switch their mortgage deal and plenty of time to consider their mortgage options at the end of their fixed term. Customers can request a better like for like deal right up until two weeks before the new term starts, if one is available.
“We’re keen to engage our registered brokers with our product transfer ranges and make sure they are the first to know our latest deals. We know it’s important that they retain their relationship with our customers to get the best mortgage for them which is why we encourage our customers to contact them. We’re delighted with our outcomes in 2024 and aim to build on that in 2025.”
Helen Lewis, National Account Manager, Principality Intermediaries
