At the same time, there were 2% fewer remortgages completed on a monthly basis and the overall cancellation rate rose slightly to 6.1%.

The average payment decrease for the 50% of borrowers who reduced their monthly payments was £441, says the report. And in total, 16% of remortgagers reduced their total loan size by an average of £20,763.

Meanwhile, 42% of borrowers covered by the report increased their monthly payment by an average of £511.

Of the 48% who increased their total loan size, LMS has calculated this to be by £9,926 on average.

LMS says that the most popular product with a five-year fixed rate and the biggest reason to remortgage was to release equity, which accounted for 36% of the borrowers it covers.

LMS chief executive Nick Chadbourne comments: “May was a busy month for remortgaging, with instructions rising by nearly 10%. This came as lenders introduced mortgage repayment rates under 1%, making it an ideal time to remortgage for those looking to save through switching.

“We expect this activity to continue through Q3 with more borrowers taking advantage of the low rates and reduce their monthly payments.

“Research by Moneyfacts shows that five-year fixed rates are the cheapest in 14 years, and we’re pleased to see more than half of remortgagers benefiting from this.

“However, while some borrowers lock in historically low rates, others are finding it more difficult to secure the most attractive products on offer, particularly homeowners who have had changes to their circumstances since they took out a mortgage pre-pandemic.”