This is according to new data from Evaluate Technologies, which showed that around 85% of all remortgage applications through Evaluate, between June and August, were customers switching deals to better rates rather than raising cash.
A combination of cautious borrowers unwilling to take on more debt and lenders clamping down on capital raising through remortgaging is hitting mortgage equity withdrawals, the company says.
Only 4% of borrowers were able to withdraw equity to help consolidate debts while 3.5% raised money for home improvements and another 2.5% raised capital. Another 4.3% raised money to buy another property while the rest raised cash for their business.
Julie Speed, national accounts director at Evaluate Technologies said: "Neither lenders nor borrowers are willing to take risks in the current market. Inevitably that means fewer applicants are even trying to withdraw equity.
"Just as the best new deals are reserved for those with 40% deposits the same applies to homeowners aiming to raise cash even if they have perfect payment records and substantial equity.”
