Almost eight in 10 - 79 per cent - remortgagers switched lenders when seeking a different remortgage deal, according to the latest research from LMS.
This is an 8 per cent increase from the 71 per cent of borrowers who switched lenders in September, according to findings based on 1,004 respondents to an LMS customer survey in October 2015.
Only half of remortgagers have switched before the end of their current deal, down from 60 per cent who did so last month.
Half remortgaged only because they had come to the end of a current deal and are therefore not proactively taking advantage of the record low rates available.
The LMS survey also revealed more than a third of remortgagers - 37 per cent lowered their monthly mortgage payments by switching to a lower rate, of which 3 per cent reduced their payment by more than £500.
More than one in five - 22 per cent - increased their mortgage by more than £10,000.
LMS said of those who remortgaged to increase the size of their loan, 59 per cent did so in order to make home improvments, while more than a quarter - 27 per cent - did so to pay off other debts.
Alongside this, a small number used the additional cash to pay for a holiday, school fees or to help other children buy property.
Andy Knee, chief executive of LMS, said: “The Bank of England is now likely to hold interest rates at bay until well into 2016, making it a fruitful season for remortgaging.
“On top of rock bottom rates, the wheels are in motion for continued momentum; UK housing stock values are increasing; and lenders are open for business.
“Borrowers not thinking about the option of remortgaging just yet should be aware that they can save hundreds of pounds by locking into the right deal.”
David Hollingwoth, associate director for communications at London & Country Mortgages. said: “The market is so competitive and rates so attractive at the moment that it is surprising that more borrowers have not been taking the opportunity to review their deal.
“There are not only large savings to be made but it also offers the chance to protect against any rate rises to come.
“It is encouraging to see from these figures that more borrowers are realising the benefits of switching their deal. However, it is important that their apparent expectation of rates holding steady does not manifest itself as apathy when it comes to their mortgage.”
LMS’s research comes at the same time as figures from the National Assocation of Estate Agents house show sales to first time buyers accounted for 31 per cent of total sales in October - the highest since 2009.
ruth.gillbe@ft.com
