LMS has revealed that there was an average monthly payment increase for those who remortgaged in May of £207.

The conveyancing firm’s Monthly Remortgage Snapshot also found that 44% of borrowers increased their loan size in May, and 63% of those who remortgaged took out a five-year fixed rate product, the most popular product in May.

26% said their main aim when remortgaging was to lower their monthly payments, the most popular response.

A spokesperson for LMS said: “With the deepening cost of living crisis, consumers need competitive longer-term fixed rate products.

“The figures show that there has been a substantial increase in instructions indicating higher consumer demand and increased market activity, as predicted last month.

“Consumers are looking to make savings in light of the cost of living crisis and further base rate rises, trying to lock in competitive, longer-term fixed rate products ahead of the next ERC date at the end of June. This was also reflected in the way five-year fixed rate products not only remained the most popular product in May, but the amount of people taking them out, compared to other products, was up by nearly 10% from April. This is because, in addition to offering longer-term financial security, many fixed rate products for five or more years are now cheaper than two-year fixed rate products.

“As such, lenders will try to remain competitive and even consider the possibility of widening their range to include seven-year or 10-year fixed rate products. That said, uncertain economic conditions make affordability much more of a prominent factor. We should expect lenders to become more cautious when it comes to their risk profile, and rightly so.”