Data compiled by remortgage specialists LMS showed that the total number of remortgage deals increased by 47% between June and July.

In total 46,423 remortgage loans were completed last month. This figure is 89% higher than a year ago, and the largest number recorded since November 2008.

The firm estimated £7.2bn of remortgage lending was completed during the month. This is also 89% higher than a year ago.

LMS said the turnaround had been dramatic and the amount lent was 41% up on the previous month.

The total amount of equity released through remortgaging was £1.27bn, the highest level recorded since April 2008. This is 16% up compared to the previous month and 183% higher than last July.

Andy Knee, Chief Executive of LMS, said low mortgage rates and a greater willingness to lend by banks had contributed to such a turnaround.

“Remortgaging has come back with a bite in July, following sluggish levels of activity throughout the latter part of 2014 and first months of 2015,” he said.

“We are confident these levels will be maintained with a steady stream of customers for the remainder of the year as record-low affordability encourages borrowers to lock in competitive rates.

“Despite news that a base rate rise may be on the cards, lenders have not hiked rates and there are still many excellent deals to be had as lenders compete for business. But these will not last forever and borrowers should consider remortgaging now to avoid missing out.

“The current economic climate and rising average incomes mean households are typically less stretched then previously. Remortgaging has never been as affordable and can offer huge monthly savings as the gulf between new purchase and remortgage payments as a percentage of income grew, to 2.7%*. A six year high in the amount of equity withdrawn through remortgaging shows financially shrewd borrowers are keen to capitalise on these potential savings.”