"The growth in equity withdrawal for portfolio expansion suggests that landlords are managing their businesses astutely"
- Louisa Sedgwick - Paragon Bank
Landlords remortgaging in the first half of 2025 withdrew more equity to expand their portfolios than at any other time since records began, according to Paragon Bank’s analysis of industry data.
Between January and June, buy-to-let landlords who remortgaged properties withdrew £1.94 billion to fund portfolio expansion. This is the highest value recorded for the period dating back to 2018, when this data was first tracked.
The total stems from 9,852 remortgage completions where equity was withdrawn for portfolio growth. While this represents the highest first-half volume in the seven-year period, it is slightly below the 10,028 recorded in the first half of 2021, which coincided with record-low interest rates and the Stamp Duty holiday.
The figures also highlight steady growth since 2023, following a period of high interest rates triggered by the mini-Budget. In the first half of 2023, 8,133 remortgages were written, valued at £1.49 billion. This rose to 9,088 loans worth £1.67 billion in the same period in 2024, before reaching the current record.
“The growth in equity withdrawal for portfolio expansion suggests that landlords are managing their businesses astutely," comments Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank (pictured).
"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.”
