Landlords withdrawing record amounts of equity for portfolio expansion

Landlords remortgaging in the first half of the year withdrew more equity to expand their portfolios than any other corresponding period since 2018, Paragon Bank’s analysis of industry figures have revealed.

Between January and June 2025, landlords who remortgaged buy-to-let properties withdrew £1.94 billion to fund portfolio expansion. This is higher than any other corresponding period dating back to 2018, the first year this data began to be recorded.

This total value is the sum of 9,852 remortgage completions where equity was withdrawn for portfolio expansion during the period. This represents the highest H1 volume during the same seven-year timeframe, excluding the 10,028 recorded in the first half of 2021 against a backdrop of record low interest rates and the stamp duty holiday. 

The figures highlight how the value of investment in portfolio expansion has steadily increased, by 30%, from the first half of 2023 after the market was impacted by the high interest rates fuelled by the mini-Budget. Then, 8,133 remortgages were written, valuing £1.49 billion, where equity was withdrawn to expand portfolios. This increased to 9,088 loans valuing £1.67 billion during the same period in 2024. 

Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “The growth in equity withdrawal for portfolio expansion suggests that landlords are managing their businesses astutely. Proactively leveraging the capital appreciation enables landlords to strategically reconfigure their portfolios, investing in the propositions that offer the best returns to remain profitable, despite the economic pressures felt across all sectors in recent years.

“With interest rates gradually coming down, remortgaging is likely to continue to make up a substantial volume of lending. By proactively working with landlords and discussing their plans, brokers can identify opportunities to secure business ahead of mortgages maturing.”