Remortgage lending reached £5bn in May, up by more than a quarter (26%) from May last year, according to LMS.

The figure was down by 16% from April, which was an exceptional month for remortgaging, according to the legal services firm.

The number of remortgage loans also decreased month-on-month – by 7% – from 34,800 in April to 32,334 in May, but this is 31% more than May 2015.

Surge in equity withdrawn

The average amount of equity withdrawn per customer from remortgaging has risen by 43% month-on-month, from £23,479 in April to £33,691 in May, and is up by a quarter compared to a year ago.

Andy Knee, chief executive of LMS said: “Remortgaging witnessed its best month of May since 2008, although the numbers are slightly down following a rush to remortgage in April.

“We will have to wait and see what the impact of June’s Brexit decision on the housing and mortgage markets will be in the short and medium term. There will be some uncertainty and volatility to cope with as everyone absorbs the news and this is likely to put a dampener on the housing market at least until the autumn.

“However, interest rates remain at historically low levels and for those with a mortgage now is a great time to take out a fixed rate and stabilise their financial outgoings.”