However, house purchase applications dipped by 3.6% and first-time buyer applications by 3.9% in Q1 compared to last year.

The jump in remortgaging meant that overall mortgage activity was 25% higher year on year, despite the softening of the purchase market.

Remortgage activity is expected to remain strong throughout the year as UK Finance reports 1.8 million fixed rates are due to end in 2026.

Two-year fixed rates surged in popularity, up by 26%, to represent 65% of the market.

Meanwhile, five-year fixed rates plunged by 26% to make up a 29% share of applications.

Borrowing costs fell annually, despite the impact of rising swap rates since the outbreak of war in Iran.

The average interest rate dropped 43bps year on year from 4.74% to 4.31%.

Stonebridge chief executive Rob Clifford says: “We know many borrowers locked into attractive five-year rates during the pandemic.

“Now that so many of those consumers are reaching the end of the deals they grabbed at that time, we are naturally seeing huge demand for advice on refinancing options.

“That will continue throughout this year, with plenty of lenders dynamically pricing both product transfers and remortgage deals to win market share.

“We’re likely to see a reversal in rate volatility in the second half of the year and the popularity of variable or tracker rates might increase.

“If the energy crisis is short lived, a variable product would allow borrowers to capitalise on a falling base rate once the conflict subsides, but this is a time when impartial and expert mortgage advice is worth its weight in gold.”