Data from Nottingham Building Society showed that 16% of all homeowners were considering switching their mortgage.

Borrowers could save up to £99 each month, equivalent to £1,188 a year, by doing so.

Council of Mortgage Lenders data released earlier this month showed the remortgage market was starting to grow once more. Remortgage lending in its most recent survey was up 15% and this figure is expected to rise.

The Nottingham said recent rate cuts had seen many five-year fixed terms fall below 2%, something which will entice more people to remortgage their loan.

It said longer fixes were the most popular with borrowers and more than a quarter (27%) had opted for a five-year fix. One-in-five consumers (21%) had chosen to fix for two years.

Three-quarters of all remortgagors were seeking a fixed rate deal and 12% said they would fix for longer than five years if suitable products were available.

Ian Gibbons, senior mortgage broking manager, said more people were looking to take advantage of favourable rates.

“The mortgage price war is interesting to existing homeowners who are keen to take advantage of the record low rates,” he said.

“With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had. Potentially savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal at 4% to one at 2% could be around £3,000 a year better off.

“However, to secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won’t save you much if you have to pay a high fee.”