It found that the number of remortgages rose to 36,195, an 8% increase from July, and a 45% increase annually with 11,000 more remortgage transactions occurring in August this year.
Last year homeowners would wait up to five years to consider remortgaging their house. This time period has reduced by eight months to four years and seven months as people take advantage of the low interest rates.
Earlier this month the Monetary Policy Committee (MPC) voted to hold the Bank of England base rate at the unprecedented low of 0.25%, in a bid to strengthen the economic outlook for the second half of 2016.
Andy Knee, chief executive of LMS, said: “The Bank of England’s decision to cut the base interest rate continues to have a positive impact on the remortgage market. Mortgage interest rates had already fallen to record lows, which along with rising house prices has encouraged a greater number of homeowners to remortgage their homes
“With today’s favourable conditions, it is no surprise to see eight months shaved off the average time that people wait to remortgage and there is plenty of incentive for more people to consider acting before the year is out.”
Despite the high level of remortgaging, LMS’s figures found the value of remortgage lending fell by 2% from £6.0bn in July to £5.9bn in August.
The average homeowner remortgage loan amount also dropped by 6% between July and August from £172,184 to £162,268, as homeowners exercised caution by reducing their loan-to-values (LTVs) in the wake of turbulent times in the market post the Brexit result.
