LMS’s monthly remortgage snapshot showed that the number of clients remortgaging onto a five-year fixed rate rose by four percentage points in July compared to June.
The firm noted that while in previous years a two-year fix was the top choice for those moving to a new product, 34 per cent of borrowers opted for a deal of this length in July.
Nick Chadborne (pictured), chief executive officer at LMS, said: “This is likely to be a reflection of wider market uncertainty and borrowers wanting to take control of their mortgage payments for a longer period of time.”
The report highlighted that the volume of remortgage deals and the three-month rolling average loan amount fell in July.
A total of 52,869 remortgage products were taken out in July, down from 53,516 the month before. The average loan amount dropped to £174,386, down from £174,685.
Of those remortgaging, 42 per cent increased the size of their loan, while 24 per cent reduced it.
While 44 per cent saw their repayments rise as a result of remortgaging, 42 per cent saw month repayments fall thanks to switching.
The importance of advice was made clear in the report, which found that 67 per cent of borrowers opting to move lenders and remortgage did so on the advice of their broker, the same amount for the third straight month.
Chadborne added: “It’s good to see brokers were a significant force behind this, with 67 per cent choosing to remortgage on the advice of their mortgage broker. For those coming to the end of their fixed mortgage term, speaking to an independent mortgage broker is a sensible move to help plan for the long-term, as refinancing can see borrowers save thousands of pounds every year.”