Nick Chadbourne, chief executive of LMS said: “Volumes are up month-on-month and this trend should continue in Q4 as remortgaging continues to outperform other areas of the market.”
LMS analysed its own conveyancing data and UK Finance remortgage lending figures to find that five-year fixes remained the most popular product in August. They accounted for 48 per cent of all remortgages, down from 50 per cent in July.
Two-year fixes made up 35 per cent of the remortgage market, up from 34 per cent in July, and 10-year products held firm at five per cent.
Only three per cent of remortgage borrowers took out a variable or tracker rate.
“Product purchasing levels remain consistent, but we do expect 10-year fixes to become increasingly popular in line with current industry activity we are seeing. Borrowers are looking for certainty,” Chadbourne said.
“A significant peak in early redemption charge expiries is on the horizon for October and therefore we expect a ramp-up in remortgage activity over the next few months,” he added.
The number of remortgages rose by 0.5 per cent to 53,141 in August, up from 52,869 in July.
The average loan amount on a three-month rolling basis increased by two per cent to £178,107, against £174,386 in July.
And the average rise in monthly payments for people who remortgaged in August was £214.31.