Equity withdrawn for portfolio expansion hits highest since records began: Pagaron
Quick Summary
Landlords remortgaging in the first half of the year withdrew more equity to expand their portfolios than any other corresponding period since 2018. This is according to Paragon Bank’s analysis of industry figures. It is possible to remortgage a buy-to-let (BTL) property portfolio. There are many specialist lenders offering property portfolio remortgages with competitive rates.
Landlords remortgaging in the first half of the year withdrew more equity to expand their portfolios than any other corresponding period since 2018. This is according to Paragon Bank’s analysis of industry figures.
Paragon's research shows between January and June 2025, landlords who remortgaged buy-to-let properties withdrew £1.94 billion to fund portfolio expansion. This is higher than any other corresponding period dating back to 2018, the first year this data began to be recorded.
Paragons says this total value is the sum of 9,852 remortgage completions where equity was withdrawn for portfolio expansion during the period.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.
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 Then, 8133 remortgages were written, valuing £1.49 billion, where equity was withdrawn to expand portfolios. This increased to 9,088 loans valuing £1.67 billion during the same period in 2024.
Commenting on the figures, Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, said: “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 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.”
Is it still possible to remortgage a buy-to-let mortgage portfolio?
Yes, it is possible to remortgage a buy-to-let property portfolio. Remortgaging involves replacing your current mortgage(s) with a new one or two lenders, depending on your situation and whether you are switching your portfolio to be in a limited company. Often, to secure a better interest rate, a different tax status, release equity, or restructure your finances.
How cheap are buy-to-let mortgage rates?
Buy-to-let mortgage rates have fallen significantly over the last year, and there are many high-fee and low fixed-rate options. Some two-year fixed rates are priced just over 2% with 7% arrangement fees, while HSBC offers sub-4% fixes with £1,999 arrangement fees. BM Solutions has buy-to-let fixes priced around 3.7% with 3% fees or rates closer to 4% with 1% arrangement fees. Landlords need a deposit between 40% and 25% to access the most competitive rates.
Top cities for rental yields in the UK
According to Zoopla figures, Sunderland, Aberdeen and Burnley top the UK rental yield chart, with average gross yields over 8%. The top 17 cities for rental yields in the UK are all in the North of England and Scotland. In contrast, southern cities tend to have much higher house prices, bringing the gross yield down for buy-to-let properties. Here’s how every city in the UK compares for gross rental yield.
Zoopla says Sunderland has the lowest average monthly rent at £659, while the average rent in London is £2,119.
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