A survey of over 2,000 homeowners by Nottingham Building Society found 65% will go for a fixed-rate mortgage once their current deal expires, with half favouring a two or three-year deal and the other half considering a five-year plan or longer.

Bank of England data shows average two-year fixed rates have reduced substantially since 2014, saving the typical remortgage customer more than £1,000 a year.

However, the research shows confusion among remortgage customers as 16% do not know what they’ll do when it comes to their next mortgage deal, while 6% said they will move on to their lender’s standard variable rate.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services (part of The Nottingham), said: “The ongoing mortgage rate war among leading lenders has seen the launch of a range of low rates.

“The best deals do not tell the whole story of course as deals vary depending on how much equity homeowners have or how big a deposit they can find. But the trend in the past two years has been down and there are potentially substantial savings to be made.”

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He said that customers need to be able to search the whole market and to look for as wide a range of deals as possible before making a decision on their next mortgage deal which means getting expert help.