Figures released by LMS found the number of remortgages fell by 12% in September from 34,900 in August, to 30,766 in September.
The downward trend continued with the gross remortgage lending, which decreased by 14% to £5.1bn in September from £5.9bn in August.
Additionally, the frequency of remortgaging also slowed down compared to August, which now stands at four years and nine months.
Andy Knee, chief executive of LMS, said the figures were surprising considering the discounted rates on offer to customers.
But he said it was evidence of customers exercising caution as the nation’s economy remains shrouded in doubt and ambiguity since the Brexit vote in June.
Knee encouraged customers to take advantage of the current climate of low rates as he suspected providers would soon raise their rates to cover costs from higher swap rates seen in the past few months.
However, Knee remained optimistic about the market as annual repayments had fallen and mortgage rates were at their lowest-ever level.
He added: “For those homeowners willing to remortgage, there remains plenty of incentive to do so and many could still benefit by remortgaging onto deals with lower interest rates and repayments.”