Landlords remortgaging in the first half of the year withdrew £1.94 billion in equity to expand their portfolios, according to new analysis from Paragon Bank.

It is the highest H1 total recorded since data collection began in 2018.

Between January and June 2025, there were 9,852 remortgage completions where equity was withdrawn specifically for portfolio expansion.

This is the highest H1 volume recorded over the seven-year period, excluding the 10,028 completions seen in the first half of 2021 during a period of record low interest rates and the Stamp Duty holiday.

The figures show a steady rise in both the value and number of portfolio-driven equity withdrawals since the market was affected by higher rates following the mini-Budget.

In the first half of 2023, 8,133 such remortgages were completed, totalling £1.49 billion. This increased to 9,088 loans worth £1.67 billion in the same period in 2024.

Paragon said the data indicates that landlords are reconfiguring portfolios and reinvesting capital gains to maximise returns in a more challenging environment.

STRATEGIC APPROACH

Louisa Sedgwick (pictured), managing director of mortgages at Paragon Bank, 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 all sectors in recent years.”

She added: “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.”