Maciej Rymaniak

Property Investment Mortgages

Finance for your next property investment

Whether you’re purchasing your first rental property, adding another property to an established portfolio or considering a different investment strategy, getting the finance right can make a significant difference.

Maciej Rymaniak is a Mortgage and Protection Adviser at Five Star Mortgages, with experience supporting property investment cases. Internal case material shows him handling a long-term investment purchase involving rental demand, expected yield, professional letting management and a deposit raised through an existing property.

What is a property investment mortgage?

A property investment mortgage is finance used to purchase or refinance a property that is intended to generate a return rather than simply being your main home.

One of the most common forms is a buy-to-let mortgage, where the property is rented to tenants.

Unlike a normal residential mortgage, lenders will typically look closely at the property's expected rental income when assessing a buy-to-let application. MoneyHelper explains that lenders commonly require rent to cover around 125% to 145% of mortgage payments, although exact criteria vary considerably between lenders and applicants.

This is where working with Maciej Rymaniak can help. Rather than considering the interest rate alone, the application can be looked at in the context of the property, deposit, rental income, your circumstances and your longer-term investment plans.

Property investment options Maciej can help you explore

🏠 Buy-to-Let Mortgages

Buying a property specifically to rent to tenants?

Buy-to-let mortgages are designed for rental properties and work differently from standard residential mortgages. Your expected rent, property value, deposit and individual circumstances can all influence how much you may be able to borrow and which lenders may consider the application.

Many buy-to-let mortgages are also structured on an interest-only basis, meaning the capital still needs to be repaid at the end of the mortgage term. [moneyhelper.org.uk ]

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🏘️ Portfolio Landlords

Already own investment properties?

As your portfolio grows, arranging finance can become more involved. The overall portfolio, existing borrowing, rental performance, property types and proposed new investment can all become relevant.

Maciej can help you explore mortgage options when:

Adding another property
Refinancing an existing investment
Releasing equity
Reviewing an existing portfolio
Planning your next investment purchase

🏢 Limited Company Buy-to-Let

Some investors choose to purchase investment properties through a limited company or SPV.

The right structure isn't simply a question of finding the cheapest mortgage. Tax treatment, mortgage costs and your longer-term objectives all need consideration.

For individual landlords, mortgage interest is currently treated differently for tax purposes from interest incurred within a company structure. However, incorporation can introduce other costs and tax consequences, so it isn't automatically the better option.

Maciej can advise on the mortgage options. You should obtain specialist tax advice before deciding which ownership structure is right for you.

🔑 First-Time Landlords

You don't necessarily need to own a large portfolio to invest in property.

There are mortgage products available for first-time landlords, although lender criteria vary. MoneyHelper notes that some lenders require applicants to already own their own home, while others have different income, credit and affordability requirements.

Maciej can assess your circumstances and help identify options appropriate to your first investment.

How much deposit do I need?

Buy-to-let generally requires a larger deposit than a standard residential purchase.

As a broad guide, buy-to-let deposits commonly fall within 20% to 40%, with 25% a common starting point, although the amount required depends on the lender, property and applicant.

Example

For a £250,000 investment property:

25% deposit: £62,500
Mortgage: £187,500
Loan-to-value: 75%

But deposit size is only one part of the calculation. Expected rent may also need to satisfy the lender's rental coverage or stress-testing requirements.

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What will a lender consider?

There isn't one universal set of property-investment mortgage criteria.

Depending on the mortgage and lender, considerations can include:

✓ Property value
✓ Size of your deposit/equity
✓ Expected monthly rent
✓ Rental coverage calculation
✓ Personal income
✓ Credit history
✓ Existing properties and borrowing
✓ Property type
✓ Landlord experience
✓ Whether you're purchasing personally or through a company
✓ Your intended repayment strategy

That's why a property that appears to be a good investment doesn't automatically mean every lender will finance it.

Maciej can look at the whole case, rather than just one number.

It's about more than the mortgage rate

The lowest advertised rate isn't necessarily the most appropriate investment mortgage.

You may also need to consider:

Arrangement fees
Valuation costs
Legal fees
Early repayment charges
Interest-only versus repayment
Rental coverage requirements
Property eligibility
Letting-agent costs
Maintenance
Insurance
Potential void periods

For example, letting-agent management fees can commonly represent around 8% to 15% of monthly rent, depending on the management service, while mortgage arrangement fees can be £1,000 to £2,000 or more and may sometimes be percentage based.

Looking at the complete cost of finance can therefore be much more useful than comparing headline rates alone.

Building a property portfolio?

Think beyond the next purchase.

Your next mortgage shouldn't necessarily be considered in isolation.

If you're planning to build a property portfolio over time, it can be useful to think about how today's finance could affect tomorrow's options.

Your plans might involve:

Purchase → Rent → Review → Refinance → Reinvest

That could include releasing equity from an existing property to help fund another investment. An internal investment case handled by Maciej Rymaniak, for example, involved deposit funds generated through a capital raise with the client's existing lender.

Every case is different, so borrowing against an existing property needs to be assessed carefully.

Why speak to Maciej?

Property finance without unnecessary jargon.

Maciej Rymaniak is a Mortgage and Protection Adviser at Five Star Mortgages.

His approach can help investors understand:

01. What they can potentially borrow
Looking at your finances, deposit and rental expectations.

02. Which lenders may fit the case
Different lenders have different approaches to property investment.

03. How the mortgage fits the investment
The property, rent, fees and your longer-term objectives all matter.

04. What happens next
From exploring options through to mortgage application and completion.

Ready to discuss your property investment?

Whether you're researching your first buy-to-let or looking at the next property in your portfolio, speak to Maciej Rymaniak about your mortgage options.