July saw the highest uptake of 5-yer fixed rate products making up half of purchases in the month, according to LMS’s Remortgage Snapshot.
This represents an increase of 4% from figures recorded in June.
Nick Chadbourne, chief executive, LMS, said: “We’ve seen five-year fixes grow in popularity for some time now.
“This month saw the highest number recorded, with half of borrowers choosing to fix for this length of term.
“In previous years 2-year fixes were the norm, but now only a third of borrowers (34%) choose this length as they opt for longer terms.
“This is likely to be a reflection of wider market uncertainty and borrowers wanting to take control of their mortgage payments for a longer period of time.
“Similar to last month, it’s good to see brokers were a significant force behind this, with 67% of borrowers choosing to remortgage on the advice of their mortgage broker.
“For those coming to the end of their fixed mortgage term, speaking to an independent mortgage broker is a sensible move to help plan for the long-term, as refinancing can see borrowers save thousands of pounds every year.”
The majority (96%) of those who remortgaged in July did so with a fixed rate product.
Brokers are continuing to drive consumer behaviour and this is reflected in 67% of borrowers opting to move lenders and remortgage on the advice of their broker – the same amount for the third month running.
Outside London and the South East the highest average remortgage loan amount for July is in East Anglia, at £190,570.
Outside London and the South East, the shortest previous mortgage length is in Yorkshire, at 52.08 months.
Some 42% of borrowers increased their total remortgage loan size, around a third (34%) saw no change and just under a quarter (24%) reduced their total loan size.
In addition, the data reveals that the volume of remortgages dropped from 53,516 in June to 52,869 in July.