There were 5% fewer remortgages completed in June than there were the month previous, the latest LMS remortgage report shows.

Additionally, remortgage instructions increased by 16%, the report says, which LMS chief executive Nick Chadbourne points out as being, “not as high as we would expect in the lead up to the large number of ERC expiries in July.

“This means that many borrowers who are remortgaging are opting for a product transfer,” he concludes.

As well as this, the remortgage cancellation rate dropped by 0.45%, giving an overall cancellation rate of just over 6%, and the remortgage pipeline grew by 11%.

Borrowers who brought down their monthly repayment via a remortgage did so by an average of £200, and those who saw their repayments rise saw an average payment increase of £261.

Overall, 55% of borrowers increased their loan size and by an average of £21,586.

And 16% of borrowers shrank their loan by an average of £12,217.

Chadbourne says: “Steady activity and easing restrictions continued to improve lender confidence in June, which gave borrowers greater product choice and better deals.

“As the purchase market continues to boom, supply is the only factor which might slow it down. The end of the stamp duty holiday will have had some impact, but the key drivers to move out of cities, find green space and upsize are all still there to drive demand.

“Until supply is properly addressed, inflated house prices and competitive mortgage rates are expected to stay.

“We expect to see more borrowers opting to stay put in this environment, boosting remortgage activity and contributing to a healthy pipeline in the coming months.”