Remortgaging picked up in the end of 2010 but the level overall for the year remained at the lowest level since 1997. The trend for remortgages is expected to continue as home owners that came off cheap loan deals seek to secure a low rate before the Bank of England chooses to raise the rate above its current 0.5 per cent.

According to the Council of Mortgage Lenders data the number of people that remortgaged declined to 313,200 which is a 13 year low. In 2008 the number of remortgages totaled 408,000. The decline in numbers can be attributed to the fact that many of those that converted to their bank’s standard variable rates remained on them due to the low interest rates. Usually staying on a standard variable rate was an expensive risk and homeowners quickly sought out a new deal, but with the rate remaining unchanged for almost two years there have been fewer remortgages up until now.

With the recent inflation numbers and the possibility of steady increases over the next few months, there is a great probability that the Bank will raise the standard base rate. This has pushed many homeowners to seek a remortgage before they lose the opportunity of a low rate that may not be seen again.

Melanie Bien, director of independent mortgage broker Private Finance, said: "There has been very little incentive to remortgage over the past year, with interest rates stuck at historic lows and the majority of borrowers slipping onto cheap variable rates with no remortgage fees or early redemption charges to worry about.

"However, this situation is likely to change this year with remortgaging growing in popularity if borrowers seriously believe that interest rates are going to rise significantly."