The volume of remortgages increased in December, rising from 52,521 to 52,983 month-on-month, according to LMS.

The average loan amount also increased on a monthly basis, up from £175,531 to £178,613.

Of those who remortgaged last month, the most popular loan type was five-year fixed rate products at 46 per cent.

Furthermore, 45 per cent of homeowners increased their total loan size, 36 per cent saw no change, and 19 per cent reduced their total loan size.

The average loan was increased by £20,146, and the average decrease was by £10,501.

On a regional basis, Yorkshire and the North West recorded the greatest rise in the volume of remortgages, both increasing by 10 per cent to £134,999 and £136,823, respectively.

In contrast, London recorded the most substantial fall, dropping by 3 per cent to £334,723. The East Midlands followed, recording a 1 per cent decline to £139,109.

LMS chief executive Nick Chadbourne says: “Average loan amounts grew in December, as we saw an increase of 3 per cent across the country with borrowers taking advantage of competitive rates to release additional equity.

“As it stands, the remortgage market is forecasted to be flat in 2020. A base rate reduction, however, paired with greater political certainty, could lead to the ‘Boris Bounce’ being felt within the remortgage market, as borrowers look to leverage the low interest rates through fixed products and releasing equity from their property.”