Buy-to-let lending rises by 22.7%

Latest data from UK Finance has found that buy-to-let (BTL) lending rose by 22.7% in  Quarter 3 (Q3) 2025.

The research showed that there were 59,467 new buy-to-let (BTL) loans advanced in the UK worth £10.9 billion in the third quarter of 2025. This was up quite significantly compared with the same quarter in the previous year, 22.7 per cent by number (28.2 per cent by value).

The number of BTL fixed rate mortgages outstanding in Q3 2025 was 1.44 million, 2.3 per cent up on a year previously. In contrast, the number of variable-rate loans outstanding fell by 9.7 per cent to 488,000.

At the end of Q3 2025, there were 10,420 buy-to-let mortgages in arrears greater than 2.5 per cent of the outstanding balance. This was down 850 from the previous quarter. There were 900 buy-to-let mortgage possessions taken in Q3 2025, up 28.6 per cent from 700 in the same quarter a year previously.

Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, said “The marked uplift in the value and number of buy-to-let mortgages written compared to the previous quarter, and particularly the same period a year ago, demonstrates how landlords will invest in buy-to-let property when market conditions allow.

“The third quarter saw strong levels of remortgage activity, the highest since the final quarter of 2022, partly driven by landlords releasing equity to fund new acquisition. This continued the trend from the first half of the year, which saw more equity withdrawn at remortgage for portfolio expansion than any other corresponding period since 2018. Viewed in the context of the latest encouraging figures, and with rates forecast to continue to fall, we anticipate the momentum seen in both the purchase and remortgage markets to continue throughout 2026.”