By David Firth, Product Director at Moneyhub
TL;DR: With remortgage applications surging by 46% in early 2026, lenders must shift their focus from interest rate competition to providing frictionless, data-led customer journeys. By leveraging AI-powered categorisation engine and Open Banking data, firms can automate income verification, slash underwriting times, and proactively support vulnerable borrowers. Ultimately, retaining customers in this volatile market requires moving away from cumbersome manual processes toward instant, automated decisioning that prioritises speed and financial wellbeing.
In my role at Moneyhub, I’m closely watching a significant shift in the mortgage market. In Q1 of 2026, remortgage applications have surged by 46% compared to the same time last year (Source: Mortgage Strategy). This means that lenders are facing a massive operational mountain.
Historically, ‘protecting the backbook’ was a game played almost exclusively on interest rates. But in today’s volatile landscape, I believe the battleground has moved. To retain customers and manage risk effectively, the focus must shift from pure pricing to the quality and speed of the journey.
The friction problem
For many borrowers, the remortgage process remains a source of significant financial friction. Even for existing, loyal customers, being asked for proof of income or navigating manual underwriting can feel like starting from scratch.
When the digital experience is cumbersome, the temptation to look elsewhere for a better rate, or turn to a broker, grows.
At Moneyhub, we are building solutions that move away from generic, transactional product transfers toward what I call friction-appropriate journeys, and in turn helping lenders to claim that direct relationship.
Turning data into decisions
The cornerstone of a modern remortgage strategy is the ability to understand a customer’s financial life in real-time. This is where the Moneyhub Categorisation and Enrichment Engine becomes a strategic asset for lenders. By using AI to turn raw transaction data into structured intelligence, it enables lenders to:
- Automate income verification: instead of asking customers to hunt for payslips or PDFs, Open Banking allows for instant, secure verification. Where firms still require a manual review, I’ve seen underwriting times halve from 30 minutes to just 15. However, the real power lies in enabling fully automated, instant decisioning.
- Handle complex profiles: as non-standard employment (self-employment, gig economy) and multi-income households become the norm, automated categorisation helps underwriters see the full picture without increasing manual overhead.
- Identify vulnerability early: beyond speed, there is a duty of care. Real-time data allows lenders to spot signs of financial distress early and proactively support customers through challenging life events.
The path forward
To safeguard the backbook during the upcoming peak, I encourage lenders to ask themselves three critical questions:
- Is the journey appropriate? Does a loyal customer with a simple profile, and an existing history of repayment, really need the same level of manual intervention as a new, complex applicant?
- Is the data actionable? The real driver for quality data is the move towards true automation. Are you using categorisation to feed an automated decisioning engine, or is it just another digital attachment for an underwriter to manually review?
- Are you being proactive? Are you using data to reach out to customers six months before their deal expires with a personalised, pre-approved path?
As we move through 2026, I believe the lenders who thrive won’t just be those with the most competitive products. It will be those who respect their customers’ time and support financial wellbeing through data-led innovation
If any of the above resonates with you, contact Moneyhub today to see how our categorisation and enrichment technology can streamline your underwriting and enhance your customer retention.
About David Firth
David Firth is a pensions and wealth expert with 17 years of experience in Product. He played an important role in PSD2 and the UK’s Open Banking initiative from its conception, helping heavily regulated firms to adopt cutting edge technologies in record-time. As Product Director, gifting this flexibility and freedom to financial institutions is what David enjoys most about his role. Outside of the workplace, David is an escape room veteran, with a 100% escape record from over 60 rooms.
share
