The proportion of remortgages taken out on five-year terms was 70% this July, says LMS.

This compares to less than half being taken out for this length a year ago, says chief executive Nick Chadbourne.

Data provided by the firm also shows that instructions increased by 3% on a monthly basis while pipeline cases dropped by 1%.

For the 54% of borrowers who increase their loan size this summer, the average monthly payment increased by £226.

And for the 34% whose payments dropped, the average saving was £235 a month.

In total, the average loan increase came to £22,165 and the average decrease by £13,803.

The most popular reason for a remortgage, LMS’ report adds, at 35%, was to release equity from a property.

Chadbourne comments: “While pipeline cases dropped in July, this isn’t likely to last for long. The next ERC expiry peak coupled with the historic rate rise from the Bank of England at the start of August will result in an increase in those looking to remortgage.

“The majority of those who locked into fixed rates in July plumbed for five year products to hedge against rising interest rates, but we might well see their popularity drop in August as people wait to see if rates will drop again towards the end of the year.”