Banks and building societies need to work harder to hold onto existing borrowers as just 3% who remortgage are incentivised to stay with their lender.
More than eight out of 10 who remortgaged did so to switch lenders to get the best deal available to them, according to new research from LMS.
And more than two-thirds of those who remortgaged their properties in March did so in order to access lower mortgage rates.
Just under one quarter did so to fund home improvements.
Property services outsourcing company LMS said shrewd borrowers are keen to capitalise on today's competitive mortgage rates.
Nearly three out of 10 remortgagers increased the size of their loan, of which just under one in four increased their loan amount by as much as £10,000.
But nearly four out of 10 remortgaged to reduce their monthly payments by up to £500 and free up cash.
This was down from 40% last month, suggesting budgets might not be as stretched as previously thought.
And 11% of them remortgaged to pay off other debts.
There was a slight increase in the number of people who believed interest rates will increase to 17%, which may explain current apathy towards remortgaging with borrowers believing competitive rates will be around for the long haul.
Andy Knee, chief executive of LMS, said: "Savvy borrowers are shopping around for better deals and are clearly aware of the competitive offerings in the market.
"However, it's baffling why their existing lenders are not incentivising them to stay.
"The switching trend appears to be shaping up in other banking arenas as well, with the Payments Council reporting 1.1 million customers switching current accounts recently.
"With economic growth slowing down in March - almost half of what it was three months ago - it's important to remember that we're still on the path to economic recovery.
"We're not there yet, but what we're looking at now is a wiser, post-recession consumer shaped by almost a decade of austerity, which is something lenders need to consider in order to retain their customers."
Knee said there is still an element of complacency among those who expect competitive offers to last for a while yet. "Although people are remortaging for the right reasons, they're clearly not remortgaging enough."
Some 39% of remortgagors spoke to an independent mortgage adviser or broker, up from 36% in February.
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