Landlords withdrew nearly £2 billion in equity from remortgaged buy-to-let properties in the first half of 2025 – the highest level for any equivalent period since records began in 2018, according to analysis by Paragon Bank.
Between January and June, £1.94 billion was extracted through 9,852 remortgage completions where equity was specifically used for portfolio expansion.
Only the first half of 2021 – when record low interest rates and the Stamp Duty holiday spurred activity – recorded a higher volume of cases.
The latest figures point to a renewed confidence among professional landlords following the market turbulence triggered by the 2022 mini-Budget.
STRONGER YIELDING ASSETS
Investment in portfolio expansion has risen 30% since the first half of 2023, when 8,133 relevant remortgages were completed at a value of £1.49 billion. Activity continued to climb in 2024, with 9,088 loans totalling £1.67 billion.
Paragon’s data suggests that, even in a higher-rate environment, landlords are increasingly using capital appreciation to reshape portfolios, acquire stronger-yielding assets and adjust to shifting taxation and regulatory pressures.
STRATEGIC THINKING
Louisa Sedgwick (main picture), Managing Director of Mortgages at Paragon Bank, says: “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 swap rates edging lower and lenders sharpening pricing ahead of an expected rate cut cycle, brokers anticipate that equity-driven remortgaging will remain a core driver of buy-to-let lending volumes into early 2026.
