Remortgage completions jumped by 17.1% in April, according to the LMS Monthly Remortgage Snapshot.

It added that 53% of customers took out a five-year fixed rate product, while average monthly payments fell by £195 for those who took out this type of loan.

The overall cancellation rate in April was 6.47%, edging down 0.3%.

However, new instructions given to solicitors or conveyancers to begin a remortgage slumped by 16.1% in the same month, which has been blamed on the pressure the pandemic put on some household finances.

LMS chief executive Nick Chadbourne says: “Despite the drop in instructions, remortgage activity levels remained healthy through April with completions up 17.1% and fewer cancellations across the month.

“The industry continues to work through the backlog to meet sustained demand, buoyed by the attractive repayment rates offered by lenders as they continue to compete for business.

Chadbourne points out that residential transactions jumped almost 180% in April to 117,860 deals, according to HMRC data, the busiest April on record since 2007.

But he adds: “This is expected to slow in July following the reintroduction of the stamp duty land tax, perhaps sharply.

“A decline in purchase activity could lead to a growth in remortgage enquires as borrowers decide to stay put until market conditions steady.

“A decrease in purchase activity will reduce pressure on the mortgage market, freeing up industry capacity for remortgage business and contributing to a healthy pipeline in the second half of this year.”

However, an earlier survey suggests the health crisis making it more difficult for customers to meet lender’s remortgage criteria.

Almost one in five homeowners have been unable to remortgage since the start of the pandemic, according to a Comparethemarket report in March.

Among those borrowers unable to remortgage, 41 per cent say their application was rejected because they lost their jobs and 32 per cent say it was because they were furloughed.

A quarter of homeowners thought their application was rejected because of a salary cut.