The average monthly mortgage payment shot up by £208 following a remortgage in February, as five-year fixed rates become most popular product.

The LMS Monthly Remortgage Snapshot reported that 62 per cent of borrowers chose to fix the mortgages for five years when refinancing in February while 30 per cent chose a two-year fixed product.

Some 65 per cent of those choosing a fixed rate said that they were motivated by getting security over monthly payments, with 25 per cent saying that they were acting in response to the unstable economy.

The conveyancer’s report covers market activity through February 2022. It showed that 42 per cent of borrowers had increased their loan size, but 28 per cent were remortgaging to lower their monthly payments in the face of the rising cost of living.

However, the average remortgage amount hasn’t budged, remaining at £211,963.

There were 51 per cent more remortgage instructions during the month compared to Janaury, indicating a significant rise in activity. Additionally, 23 per cent more remortgages were completed in February.

There is a 20 per cent gap between the shortest terms in East Anglia, at 52.87 months, and the longest, in the North East at 63.53 months.

Nick Chadbourne, CEO at LMS, said: “Processing requests quickly and efficiently will be key in keeping borrowers happy.

“February has seen an uptick in remortgaging activity with almost 25 per cent more completions compared to January. Activity will almost certainly remain very high throughout March with the next big early repayment charge (ERC) date – 1 April – fast approaching and the fact that lenders are pulling products from the market due to the heightened level of uncertainty and making borrowers make increasingly frenzied decisions.”