When it comes to changing your homeloan, the majority of remortgagors are happy to switch lenders too, with eight in 10 jumping to a new mortgage provider in October.

This is an increase from seven in 10 in September, according to a survey from LMS, and reflects a huge rise in competitive deals, as well as a lack of loyalty to lenders.

Mortgage repayments slashed

The research also revealed that more than a third of remortgagors were able to cut their monthly repayments, with 3% reducing their mortgage bill by more than £500 a month.

Another third chose to remortgage to increase the size of their loan, up by 3% from 28% in September. And over a fifth bumped up their borrowing by more than £10,000.

Of those who remortgaged to increase the size of their loan, 59% did so to make home improvements, while more than a quarter (27%) used the money to pay off other debts. A small number also used the additional cash to pay for a holiday, school fees or to help children buy property.

Andy Knee, chief executive of LMS, said: “Borrowers not thinking about the option of remortgaging just yet should be aware that they can save hundreds of pounds by locking into the right deal. The value of a broker should also not be underestimated, as they can be help to guide customers through the process, and select an appropriate product based on the borrower’s personal circumstances.

“An overwhelming majority are opting to switch lenders as they wise up to the fact this can provide them with access to the best deals. For most people, switching is a straightforward process that pays dividends since there is clearly a benefit to be had from shopping around and taking advantage of the most competitive rates.”