Landlords remortgaging in the first half of the year withdrew more equity to expand their portfolios than any other period since 2018, analysis by Paragon Bank has revealed.
The analysis, which looked at buy-to-let remortgage data from UK Finance, found between January and June 2025, landlords who remortgaged BTL properties withdrew £1.94bn to fund portfolio expansion.
This is higher than any other corresponding period dating back to 2018, the first year this data was reported.
Paragon Bank managing director of mortgages, Louisa Sedgwick, 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 the sector 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.”
Paragon reported the total value of £1.94bn represents the sum of 9,852 remortgage completions where equity was withdrawn for portfolio expansion during the period.
This is the highest H1 volume since 2018 excluding the 10,028 recorded in the first half of 2021 which existed against a backdrop of record-low interest rates and the stamp duty holiday.
Paragon argued this highlights how the value of investment in portfolio expansion has steadily increased, by 30 per cent, from the first half of 2023 after the market was impacted by the high interest rates fuelled by the mini-Budget.
tom.dunstan@ft.com
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