If you already own property — residential or buy-to-let — one of the most powerful tools you have in 2025 is equity release.

By unlocking capital tied up in existing properties, you can:

• Acquire new rental units
• Refurbish existing stock
• Improve yields and EPC ratings
• Diversify into different asset types or regions

Done right, it can turbocharge your portfolio growth while keeping your overall debt profile efficient.

What is equity release in a property investment context?

Equity release is the process of raising funds against the increased value of a property you already own. It typically happens in one of two ways:

1. Remortgaging to a higher loan amount
2. Taking a second charge loan without disturbing your main mortgage

Example:

• You bought a buy-to-let for £200,000 with a 75% LTV mortgage (£150,000)
• The property is now worth £260,000
• You remortgage to 75% of the new value (£195,000)
• That frees up £45,000 in equity you can use

Why 2025 is a smart year for equity release

Despite higher interest rates, equity release remains one of the most strategic moves for investors this year. Why?

📈 Many landlords have experienced property value growth since 2020
📉 Mortgage rates have stabilised compared to 2023 highs
🏦 Lenders are cautiously optimistic and open to refinancing
🔧 Capital can be used to fund energy efficiency upgrades, now a key driver of future value
🏘️ Buy-to-let opportunities have improved in high-yield regional markets

In other words, you might already be sitting on the funds to expand — without selling anything.

Remortgage or second charge?

The best route depends on your goals, current rate, and lender appetite.

🔄 Remortgage:

• Full refinance of your existing mortgage
• May allow access to better rates or products
• Potential early repayment charges if you're in a fixed term

➕ Second charge:

• Leaves your first mortgage untouched
• Ideal if you're on a low rate or tied in
• Slightly higher rates, but more flexible underwriting

Both options have pros and cons — but second charges are becoming increasingly popular among landlords in 2025 who want to preserve attractive rates while still accessing capital.

How much can you raise?

Most lenders will allow up to 75% LTV on buy-to-let or residential equity release. However, how much you can actually borrow will depend on:

• Your rental income (stress-tested)
• Your personal income (for residential properties)
• Existing commitments
• Property condition and marketability
• Your overall portfolio (if you’re a portfolio landlord)
• 
  

Some specialist lenders may allow higher LTVs for experienced landlords or in high-demand areas, but expect stricter affordability and risk checks.

What can the funds be used for?

Lenders generally allow equity release for:

🔹 New property purchases
🔹 Deposits for buy-to-let investments
🔹 Refurbishments or conversions
🔹 Debt consolidation (in some cases)
🔹 Business use (with specialist lenders)

You’ll typically need to declare the use of funds and may be asked to show a plan — especially if it involves further property acquisitions.

Key considerations before releasing equity

Before jumping in, make sure you weigh the risks:

⚠️ Increased monthly payments — make sure rental income covers it
⚠️ Changing stress tests — lenders may be stricter than before
⚠️ Reduced flexibility — higher gearing = less room for manoeuvre in a downturn
⚠️ Early repayment charges — check your existing mortgage T&Cs
⚠️ Portfolio exposure — don’t overextend if the market turns

The goal is smart leverage, not risky overextension.

Equity release for portfolio landlords

If you own 4+ properties, you’ll be classed as a portfolio landlord by most lenders.

That means:

• You’ll need to submit a full portfolio schedule
• Lenders will assess your aggregate LTV and yield
• Your debt servicing ability must be strong across the board

💡 Pro tip: Structure your borrowing across multiple lenders if you want to maintain flexibility. Spreading exposure can reduce pressure during remortgage seasons.

How Willow Private Finance can help

At Willow, we help landlords access the equity they’ve built — and turn it into future growth.

Here’s how we support you:

✅ Analyse your current lending and property values
✅ Run stress-tested calculations to show what’s possible
✅ Source the best deals across remortgage and second charge markets
✅ Present your case strongly to lenders
✅ Structure the deal to suit your long-term goals

Whether you're looking to buy 1 more property or 10, equity release could be the bridge that gets you there.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.