Demand for five-year fixed rate remortgages has fallen to the lowest point in the market since July 2017.
This is according to conveyancing service provider LMS, which has found that five-year fixed rate remortgages dropped to 37 per cent of the market in February.
This is down from 45 per cent in the previous month.
Nick Chadbourne, chief executive of LMS, said the decline has been driven by more consumers opting for cheaper two-year fixed rate deals to balance out the cost of November's base rate rise.
The proportion of borrowers choosing fixed two-year remortgages has increased to 24 per cent in February, which is up from 22 per cent on the month before.
This is the greatest level of two-year fixed rate remortgaging in seven months.
The data also found that two-year fixed remortgages are available with an average fixed rate of 2.35 per cent in February.
Mr Chadbourne said: "Consumer interest in fixed five-year deals has dipped as many borrowers opt for the lower rates on offer from two-year products.
"This is a significant shift from what we have seen in recent months, suggesting the popularity of five-year deals may have peaked.
"The move towards two-year deals is likely a result of borrowers offsetting the cost of November's base rate increase by switching to a shorted fixed rate period when they remortgage.
"Few borrowers will want to risk a variable rate mortgage with potential increases to the base rate likely to be on the way later this year, but with incomes squeezed, demand for longer term fixed deals has slipped."
The research also found homeowners are now prepared to remortgage more frequently to get a better deal.
In February 2017, 17 per cent of borrowers expected to remortgage again in eight years' time, but one year later, just 10 per cent of borrowers expect to wait this long.
Meanwhile, 39 per cent of borrowers are planning to refinance in five to six years' time.
This is an 11 percentage point increase from February 2017.
The long-term shift towards more regular remortgaging can be seen in the surge in total remortgage lending, which reached a nine-year high in January, increasing 20.3 per cent year-on-year.
Carl Shave, director at Suffolk-based Just Mortgage Brokers, said: "With many providers now being much more proactive in customer retention, the rates offered to entice business from competitors is seeing a much more price sensitive battle to win over consumers.
"The fall in the five-year fixed rate uptake is not necessarily a trend that will be noticeable across the board as different clients have varying needs however, the prices of current two-year fixes is making the shorter term products an attractive proposition for a more immediate cash flow saving and indeed for those that have the confidence of a relatively stable rate environment."
aamina.zafar@ft.com
