-
14/7/25 8:13 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Landlords remortgaging in the first half of the year withdrew more equity to expand their portfolios than in any other corresponding period since 2018.
Paragon Bank’s analysis of industry figures reveals that between January and June, landlords who remortgaged buy-to-let properties withdrew £1.94 billion to fund portfolio expansion.
This total value is the sum of 9,852 remortgage completions where equity was withdrawn for portfolio expansion. It 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 Then, 8,133 remortgages were written, valued at £1.49 billion, where equity was withdrawn to expand portfolios. This increased to 9,088 loans, worth £1.67 billion during the same period in 2024.
Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured), says the growth 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,” she explains.
“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.”
Tags:
Comments