Huge rise in Brits cashing in on their home's value to the tune of £52,000 each

In May alone more than 20,000 people took out a bigger mortgage without moving house.

Figures from banking association UK Finance show, on average, the new loans were £52,000 more than the old ones as people turned bricks and mortar into ready money.

There was also a huge 19.8% rise in the number of people increasing their mortgage like this, compared with the same month last year.

But the big question is what are they all doing with the cash?

The number one theory is that people have decided to improve their current home, rather than move.

Shaun Church, director at Private Finance comments, said: “Improving not moving seems to be the current mentality across the UK’s property market, as remortgages with additional borrowing have soared by 20% in the space of a year.

"Homeowners are turning away from upsizing, taking out additional loans against their existing property to fund improvements that will make their home suitable for the years to come, saving thousands of pounds in stamp duty in the process."

And it's not just stamp duty you save, with estate agent fees and moving costs also bypassed.

But there's more to it than just saving cash.

Andrew Montlake, from mortgage broker Coreco , said: “The 20% increase in remortgages with additional borrowing confirms how a lot more people, given the uncertain climate, are seeking to add value to their existing homes rather than move.

“With mortgage rates so low, many people see extending and renovating their existing homes as a strategic move. They’re playing percentage property."

Sarah Coles, Hargreaves Lansdown personal finance analyst, said: "When property is expensive but prices are failing to keep pace with inflation, it puts the brakes on moving plans, because buyers worry they might be overpaying for property that drops in price later.

"Homeowners have found themselves in this position for the best part of two years, but if your home isn’t quite big enough, or it needs an overhaul, there’s only so long you can wait before deciding to spend some money on home improvements instead."