Retention

Retention refers to holding back a portion of the agreed mortgage until any repairs the property requires are completed to the satisfaction of the lender. Retention is not very common, but it tends to occur when the property the buyer wishes to purchase has some issues that come to light in the survey. Those issues may be enough to bring down the value of the property.

For example, let’s assume a property is worth £300,000. You agree to provide a 10% deposit of £30,000 and the mortgage is agreed for £270,000. However, upon inspection by a surveyor, notable issues come to light that reduce its worth to £250,000. This means that while the mortgage is agreed for £270,000 the lender may only agree to release £250,000 and to retain the final £20,000 until the work that was highlighted is completed. They will typically put a deadline on this work, so you must make sure you can meet that deadline.

The two issues that arise from this scenario are that you’d need to find the extra cash to be able to buy the property with the smaller mortgage amount initially granted. You would also need to find the funds to resolve whatever issues there are with the property. As such, there are instances where would-be buyers withdraw from a property sale for financial reasons. Even if they have the cash, they may decide they do not want to move into a property that requires significant work on it at that stage.

About the author:

The Mortgage Broker

The Mortgage Broker is an award-winning UK mortgage and protection specialist with decades of experience helping thousands of customers secure suitable and affordable mortgage solutions. Regulated by the Financial Conduct Authority, all advisers are minimum CeMAP-qualified and known for delivering clear, transparent, and expert guidance whether helping first-time buyers, home movers, remortgage clients or those with complex or adverse-credit needs. Recognised as a finalist at the Mortgage Strategy Awards 2025, The Mortgage Broker combines digital speed with human trust, offering access to over 130 lenders and more than 25,000 products. The company’s app, secure client portal and easy-to-use tools make it simple for customers to compare rates, track progress, and stay informed from start to finish. With more than 2,500 verified five-star Trustpilot reviews, clients consistently praise the firm’s professionalism, value for money, and personal service. Reviews highlight the team’s ability to explain complex mortgage and protection topics in plain English, providing support throughout the entire journey. The company’s reputation for knowledge, empathy, and reliability has made it one of the UK’s most trusted brokers, delivering advice that is honest, transparent, and tailored to each individual’s financial goals. Every part of The Mortgage Broker’s service reflects Google’s E-E-A-T principles: Experience, Expertise, Authoritativeness, and Trustworthiness. Its team has decades of hands-on industry knowledge, proven technical expertise, and national recognition supported by awards, media features, and verified customer feedback. As an FCA-regulated firm with a 5-star reputation, The Mortgage Broker stands for no-nonsense advice, common-sense lending, and exceptional customer outcomes — setting the standard for trusted mortgage advice across the UK.