Mortgage Retention

When a lender holds back part of the mortgage until the buyer fixes identified issues — a common alternative to an outright no, but you must cover the shortfall in cash or negotiate the price down.

A retention happens when the lender's surveyor identifies issues with the property (damp, structural defects, missing kitchen, unfinished work) and the lender releases only part of the mortgage at completion. The remainder is held back until the issues are fixed and the property is re-inspected. You either need cash to cover the shortfall or to convince the seller to reduce the price. Retentions are a common alternative to outright declining the mortgage.