People are seeking advice on remortgaging due to a return of confidence in the wider market, it has been suggested.

Peter Cowell, broker at Click n go Mortgages, said the concern lenders have over house prices is also fuelling the situation.

"Lenders seem to be increasing their loan-to-value criteria as well, so it is all looking like a very positive situation at the moment," he continued.

Those who believe they are in the position to remortgage will be looking to a long-term plan, Mr Cowell believes, which may lead them to consider fixed-rate products.

Low standard variable rate products are still subject to change, he stressed, which will also encourage people to opt for fixed-rate deals.

The Centre for Economics and Business Research reported on August 10th that house prices will rise by two per cent between the fourth quarter of 2009 and the fourth quarter of 2010.

It predicted that the average house price will be £152,000 by the end of 2009 and £155,000 in 2010 and that the average number of mortgage approvals per month will be 43,000 by the end of this year.