The take up of two-year fixed rates accounted for 36 per cent of remortgages while ten-year deals were chosen by two per cent of borrowers. Tracker mortgages accounted for one per cent of the deals chosen by remortgage borrowers.
Of those who remortgaged and saved money by switching to a new deal, the average saving made was £212 a month.
Some 48 per cent of borrowers increased their loan size when they remortgaged in January, according to the analysis.
Releasing equity from the home by increasing the loan size was listed as the top priority for almost 30 per cent of borrowers and the average mortgage increase was £22,231.
Overall, remortgage instruction volumes rose in January by 19 per cent and remortgage completion volumes grew by 6 per cent month-on-month.
The average remortgage loan was £143,123 in England and Wales but rose to £264,371 in London and the South East.
Nick Chadbourne (pictured), chief executive of LMS, said: “The steadying market is already having a positive impact on remortgage activity as industry capacity returns to normal levels and stakeholders have the necessary time to process remortgage cases at healthy rates.
“We can expect an incredibly busy next few months in both the purchase and remortgage markets which may run into early summer given the current turnaround times.
“Covid-19 has forced homeowners to re-evaluate their priorities in terms of space, location and accessibility, and these factors will continue to buoy the purchase market for months to come, and likely impact remortgage decisions too. However, the easing of social distancing measures will allow more staff to return to offices and give the industry the necessary resources and tools to process.”