The LMS Remortgage Snapshot showed this was a larger share than the 41% who chose a five-year fixed rate.
Remortgage activity lifted during the month as completions rose by a significant 71%.
Nick Chadbourne, CEO of LMS, suggested people were favouring short-term certainty and wanted to lock in a deal.
He added: “July’s remortgage market showed signs of shifting borrower behaviour, with a substantial rise in completions, which suggests many homeowners acted quickly to secure new deals.
“Most borrowers have favoured short-term certainty, with two-year fixed rate products becoming the most popular choice.”
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Chadbourne said: “While monthly repayments increased for many, the desire to manage costs and secure financial stability remained a key driver.”
For 28% of people who remortgaged in July, their motivation was to release equity or borrow more money, while 26% sought to lower their monthly repayments. A further 18% wanted security over their payments and to secure a deal now.
Of those who chose a fixed rate, 73% wanted certainty over their monthly payments.
Just 5% of people chose a tracker mortgage in July when refinancing.
When asked what they expected to happen with interest rates in the future, 44% said they would rise within the next year, and 19% believed any increases would be at least a year in the future.
Some 37% did not expect rates to go up.
Most borrowers increase loan size
Of the 43% of borrowers who increased their loan size after remortgaging, their borrowing rose by £20,848 on average.
Some 27% reduced their loan size by an average of £12,739, and 30% saw no change.
Monthly mortgage repayments went up by £329.54 for the 56% who saw an increase after refinancing, while the third who reduced their repayments saw them fall by £207.63. Just 11% saw no change in their repayments after remortgaging.
Remortgage pipeline falls but activity should be steady
LMS’ data showed that the pipeline for remortgages fell 9% in July, while instructions declined by 4%.
Chadbourne said: “Further spikes are likely to occur around quarter end, which is when more fixed rate products expire. Until then, I’m expecting activity to remain steady.”
