Landlords withdrew more equity to fund portfolio expansion in the opening half of the year than at any other point since records began, research reveals.
According to Paragon Bank, between January and June, investors remortgaging for buy to let homes released £1.94 billion to acquire more properties.
That figure is the highest for any equivalent period going back to 2018, when this data was first compiled.
It came from 9,852 remortgage completions where landlords opted to take capital out for expansion.
Only the first half of 2021 produced a larger tally, when 10,028 landlords took advantage of unusually cheap borrowing and the Stamp Duty holiday.
Remortgaging will continue growing
Paragon's 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 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."
More loans are being written
The strength of this year's figures mirrors a steady return to growth following the disruption sparked by the mini-Budget.
In the first half of 2023, 8,133 loans worth £1.49 billion were written with equity withdrawal for expansion.
That climbed to 9,088 cases totalling £1.67 billion over the same period in 2024.
The latest data shows a further 30% rise in the value of investment activity since those 2023 levels.
New BTL deals for landlords
The surge in equity use coincides with Paragon's launch of a multi-property buy to let mortgage designed to simplify expansion for professional landlords.
It allows applicants to include four or more properties within a single submission, with flexibility built around choice and structure.
Paragon, which has reached its 30th year in buy to let, shaped the new offering to reduce costs and improve the workflow for portfolio borrowers.
Applicants can select any product from the full range for purchase or remortgage and pick any mix of properties, including standard units, HMOs and multi-unit blocks.
Foundation sees the same trend
Further signs of strengthening demand for refinancing comes from Foundation Home Loans' latest Landlord Trends research.
Its report shows that 39% of landlords with borrowing plan to remortgage or carry out a product transfer within the next year.
Among portfolio borrowers, that intent rises sharply, with expectations of refinancing around 2.5 loans each.
A growing number also intends to release equity to buy additional properties.
That group has climbed 10% this quarter to reach 33%, pointing to increasing adoption of capital recycling strategies among experienced investors.
The lender's director of sales, Grant Hendry, said: "The latest data shows a market evolving rapidly towards greater sophistication.
"For instance, specialist buy to let requirements means one in seven landlords now plan to use a specialist loan in the coming year, and this trend is strongest among those already operating through limited companies."
Student landlords remortgaging
Simon Thompson, the managing director of Accommodation for Students, said: "Remortgaging activity is rising and equity release is becoming a central investment tool again.
"The student sector sees demand holding firm in most cities and lenders rolling out products built for complex portfolios."
He added: "Student landlords who are reading the market know demand isn't the problem and will be looking at how they finance growth in a way that keeps risk under control.
"Using equity to reposition, upgrade or buy in stronger locations is worth considering."
