"In previous years, two-year fixes were the norm, but now only a third of borrowers (34%) choose this length as they opt for longer terms."
Its figures show that the overall number of remortgages dipped from 53,516 in June to 52,869 in July.
Over the month, 96% of those who remortgaged chose a fixed rate product, with just 3% of borrowers choosing a variable or tracker rate.
LMS says brokers are continuing to drive consumer behaviour, with 67% of borrowers opting to move lenders and remortgage on the advice of their broker - the same amount for the third month running.
Nick Chadbourne, CEO of LMS, commented: “We’ve seen five-year fixes grow in popularity for some time now. This month saw the highest number recorded, with half of borrowers (50%) choosing to fix for this length of term.
"In previous years, two-year fixes were the norm, but now only a third of borrowers (34%) choose this length as they opt for longer terms. This is likely to be a reflection of wider market uncertainty and borrowers wanting to take control of their mortgage payments for a longer period of time.
"Similar to last month, it’s good to see brokers were a significant force behind this, with 67% of borrowers choosing to remortgage on the advice of their mortgage broker. For those coming to the end of their fixed mortgage term, speaking to an independent mortgage broker is a sensible move to help plan for the long-term, as refinancing can see borrowers save thousands of pounds every year.”
