Homeowners desperate for cash are increasingly treating their properties like ATMs, tapping into near-record levels of home equity through refinancing deals that could cost them tens of thousands in additional interest while eroding their long-term financial security.
While the refinance market has shifted markedly in recent months—rate-and-term loans now outpacing cash-outs for the first time in three years, according to the November 2025 Mortgage Monitor via ICE Mortgage Technology—the risks remain especially acute for the most vulnerable borrowers. Mortgage holders entered the fourth quarter with £12.95 trillion ($17.3 trillion) in home equity, including £8.38 trillion ($11.2 trillion) in tappable equity, with the average homeowner having £152,810 ($204,000) available to borrow.
