Homeowners withdrew a record amount of equity by remortgaging in December to cover the cost of Christmas.
Average equity withdrawal from remortgaging leapt hit a record high of £28,200 per borrower.
That is an increase of 35% from November and 67% year-on-year, as household finances felt the pinch over the festive season.
It is also 41% above the five-year average of £19,962, according to new figures from LMS.
Financial pressures were felt most acutely in the West Midlands and the North East where customers increased their LTVs by 15% and 10% respectively, both up to an average of 73%.
Nationally, the total amount of equity withdrawn hit £703m, the highest amount since November 2013.
The figures also showed that monthly gross remortgage lending rose 3% in December to £3.7 billion, up from the £3.6 billion reported by the Council for Mortgage Lenders in November.
LMS estimates the number of remortgage loans also rose by 4% to 24,930 in December, down 2% year-on-year.
The remortgage market share is now 23% of the total market, up 1% from November and unchanged from December last year.
Andy Knee, chief executive of LMS, said: "The close of 2014 saw a familiar pattern, with record amounts of equity withdrawn through remortgaging to cover costs incurred during the festive period.
"This year, however, was on an even larger scale than previous years, a sign that economic improvements are struggling to filter through to many households, especially at Christmas."
Knee said falling remortgaging in December "portends a cooling housing market for the coming year".
He added: "But it could also be attributed to public perceptions that remortgaging requires more effort now than previously, due to tougher regulations and the stricter lending criteria imposed by the MMR."
With the first interest rate hike being put further back, he said there would be no dramatic pick-up in remortgaging activity.
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