The latest remortgage data also showed cancellations rose by 1.29 per cent to 6.93 per cent.
Five-year fixes proved the most popular, as 47 per cent of remortgagors opted for this deal. Some 38 per cent went for a two-year fixed, three per cent went for 10-year fixes and three per cent chose a tracker product.
For 75 per cent of those who chose a fixed rate deal, security over monthly payments was the main motivator and 13 per cent went for a fixed product as they were worried about the economy.
As for why consumers decided to remortgage in July, 52 per cent had reached the end of their existing deal while 12 per cent had a change in personal circumstances.
Some nine per cent were prompted to remortgage after being contacted by a mortgage broker.
During the month, 39 per cent of borrowers remortgaged to increase their loan size and 26 per cent reduced it. Additionally, 30 per cent remortgaged so they could decrease their monthly payments.
Nick Chadbourne, CEO of LMS, said: “July’s data illustrates that the landscape has changed and the remortgage market continues to evolve.
“However, completion volumes nearly doubled from June to July, as many people look for security and certainty in their personal finances.
He added: “Five-year fixes are rising again following the initial drop we saw in April, which isn’t surprising as borrowers look to lock in longer term deals with interest rates at all-time lows.
“With the full effects of Covid-19 on the housing market unknown, we expect this trend to continue as borrowers look for certainty in their monthly outgoings.”
