A third (32%) of homeowners who remortgage do so to release equity from their homes – typically borrowing £43,900 in the process.
In the past five years over half (55%) used the cash for home improvements, a third (37%) consolidated debts and a fifth (21%) financially supported children or parents, research from uSwitch.com has found.
Nearly half (48%) of homeowners are happy to extend their mortgage term just so they can borrow more.
Thomas Lyon, money expert at uSwitch.com, said: “Large numbers of people are using their homes as piggy banks, but many may not understand the implications of doing so.
“While record low interest rates on mortgages may be enticing, taking longer to pay off the debt will cost you more in the long run.”