In July remortgage lending rose 12.7% from £3.7bn to £4.2bn, the highest gross lending figure for this time of year since 2008.
Remortgaging now accounts for 25% of the total market according to the latest figures from LMS.
Consumers who are remortgaging now take out an average of £20,425 in extra equity.
The figures showed that monthly gross remortgage lending increased by £471m in July to £4.2bn, this is the highest July figure since 2008.
Andy Knee, Chief Executive, LMS, said: “Following subdued remortgage activity in June this month’s figures show a significant boost, with both gross remortgage lending and the number of remortgages both increasing significantly.
“In fact, the total remortgage lending figure marks the most successful July we have seen since 2008.
“The average amount of equity being released has fallen this month from its 13-month high in June but due to the increase in the number of customers, the total amount of equity being released by remortgaging is continuing to grow month by month.
“Despite Carney’s tying of an increase in interest rates to unemployment figures, more than one in seven (14%) of our customers in July said they believed rates were going to rise. It is a good idea to take advantage of these deals whilst they are still around.”