More than 77% of borrowers who remortgaged that month switched to a new lender, with 64% opting for a lower interest rate deal.
Of those, 37% made a monthly saving of up to £500 and 3% saved more than £500.
According to the survey carried out among 681 homeowners, just under a quarter (24%) chose to remortgage their home to increase the size of their loan by more than £1,000 to free up capital to pay off other debts or spend elsewhere. Of those increasing their loan amount, 17% did so by as much as £10,000.
Homeowners used these savings to fund home improvements (19%) and consolidate other debts (9%) with a small proportion also planning to use the money to help their children onto the property ladder (1%).
LMS chief executive Andy Knee said: “With a plethora of competitive rates currently on offer, savvy borrowers can snap up a good deal to boost monthly finances at a time when many households feel strapped for cash – especially after what for many will have been a Christmas splurge.
“Borrowers should not be complacent, however, as competitive rates will not be around forever, and with a cooling in the wider mortgage market now may be the best opportunity to shop around for offers and provide an injection of cash to your monthly budget.”
