The Mortgage Advice Bureau said remortgage applications were up by almost a quarter between December and Janaury. This figure was also 17% higher than January 2014.

This compared to a 12% rise in purchase applications.

With house prices rising across much of the country, remortgagors are seeking lower loan-to-value products. The typical remortgage applicant was seeking a 54.9% loan-to-value deal in January, compared to 55.5% in the previous month and 57.1% this time last year.

Borrowers can save over £2,000 a year by moving to a more competitive deal, the broker firm said.

Those on a typical standard variable rate switching to the average two-year tracker at 2.16% would see monthly repayments drop to £835, representing an annual saving of £2,304.

Brian Murphy, head of mortgage lending at Mortgage Advice Bureau, said there was a ‘price war’ between lenders in the remortgage market.

“Many people will find they could benefit from significant monthly savings by moving from their current product: particularly those who are on inflated SVRs,” he said.

“The current price war has been intensified by fierce lender competition and a number of new entrants to the market. Specialist lenders are now going head-to-head with traditional competitors and eye-catching product launches have become commonplace, giving rise to historically low rates.

Murphy added: “Remortgaging is often less hassle than people think, and the savings gained by moving from an outdated product are well worth the effort. If you’re confused about the wealth of options available or the fees involved, seeking advice from a whole-of-market broker can help to identify the best deal for your circumstances.”