If you already own one or more properties, you're sitting on a powerful tool: equity.

In 2025, equity release isn’t just for retirees—it’s a smart move for investors looking to grow their portfolio without taking on high-cost finance or selling off assets.

This blog explains how equity release works, when to use it, and why it's more relevant than ever in today's property market.

🏡 What Is Equity Release (for Investors)?

Equity release is the process of accessing the built-up value in your property—without selling it.

For portfolio growth, this usually involves:

• Remortgaging your current property to release capital
• Using the released equity as a deposit or full payment for a new investment

Unlike lifetime mortgages for retirees, this is geared towards leveraging existing assets to grow your wealth.

🔢 Example: How Equity Release Works

Let’s say you have a buy-to-let valued at £400,000, with an outstanding mortgage of £180,000.

A lender might offer 75% LTV:

• 75% of £400,000 = £300,000
• £300,000 – £180,000 = £120,000 available equity

That £120,000 could be used to:

• Fund a deposit on multiple new properties
• Cover renovation works
• Consolidate debt tied to portfolio growth

📈 Why Use Equity Release in 2025?

Here’s why more landlords are turning to equity release this year:

• 📉 Lower interest rates than unsecured borrowing
• 🚀 Faster portfolio expansion without selling assets
• 📊 Improved returns via leverage
• 🔄 Tax efficiency, particularly when using limited companies
• 🏗️ Funding refurbishments to boost property value or rental yield

It’s especially popular with professional landlords and HMO investors.

🏦 What Lenders Are Looking For in 2025

To approve equity release for investment purposes, lenders typically assess:

• 🔐 Existing property value and current LTV
• 💼 Your experience as a landlord or investor
• 💰 Rental income sustainability
• 🧾 Proof of how the funds will be used
• 📉 Stress-tested affordability for the new mortgage

Expect tighter scrutiny if:

• You have multiple mortgages
• You're a first-time landlord
• You’re releasing a high % of equity

🏗️ Common Uses for Equity Release

• 🚪 Deposits on new BTL or HMO purchases
• 🔨 Refurbishment and value-add projects
• 🔄 Rebalancing or consolidating portfolio loans
• 🏙️ Investing in commercial or semi-commercial assets
• 🛫 Even overseas property purchases (with select lenders)

⚠️ Risks and Considerations

• 🔺 You’re increasing overall leverage
• 📉 Market corrections could impact equity buffer
• 💸 Higher monthly repayments
• 📑 Legal and tax implications depending on ownership structure

That’s why having a whole-of-market broker is essential.

🛠️ How Willow Can Help

At Willow, we help portfolio landlords and professional investors:

• Unlock equity with tailored mortgage solutions
• Access specialist lenders for limited company borrowing
• Navigate complex ownership structures or portfolios
• Optimise borrowing costs across your holdings

Whether you’re funding your next deal or reshaping your strategy—we’re here to guide every step.

📞 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.