Landlords are withdrawing equity from their portfolios at the highest levels on record, according to Paragon Bank analysis.
Between January and June 2025, landlords who remortgaged BTL properties withdrew £1.94bn to fund portfolio expansion.
This is the highest level since any other corresponding period dating back to 2018 when the data first began to be recorded.
The £1.94bn withdrawn in 2025 is the sum of 9,852 remortgage completions where equity was withdrawn for portfolio expansion during the period.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.
These 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Then, 8133 remortgages were written, valuing £1.49bn, where equity was withdrawn to expand portfolios. This increased to 9,088 loans valuing £1.67bn during the same period in 2024.
“The growth in equity withdrawal for portfolio expansion suggests that landlords are managing their businesses astutely,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“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.”
