Question 1

What is Pauzible?

Accepted Answer

Pauzible is a financing product for buy-to-let (BTL) landlords that unlocks the wealth trapped in the equity of their BTL property. Pauzible pays the landlord a part of the BTL property value today and participates in its future upside as well as downside. This financing is in addition to the existing BTL mortgage on the property.

Question 2

How much cash can I unlock from my BTL Property?

Accepted Answer

Pauzible provides gross financing of up to 1/10th of the value of each of landlord's BTL properties, subject to a maximum amount of GBP 150,000 per property. Portfolio Example: Property Value Pauzible Unlock Property 1 £250,000 £25,000 Property 2 £400,000 £40,000 Total £650,000 £65,000

Question 3

What is the maximum amount I can get on each property?

Accepted Answer

The maximum amount the landlord can get on each property is 1/10th of the value of the property, subject to a maximum gross financing amount of £150,000 per property and the combined loan-to-value ratio not exceeding 85%.

Question 4

Can I unlock my wealth even if I have a mortgage on the property?

Accepted Answer

Yes. The primary purpose of Pauzible financing is to potentially unlock the equity in your business BTL property, and it is in addition to your existing first-charge BTL mortgage. Example: Property value £1,000,000 Existing first-charge BTL mortgage £700,000 Landlord's trapped equity £300,000 Pauzible can potentially unlock £100,000 (1/3rd of the £300,000 equity!) This is over and above the existing £700,000 first-charge BTL mortgage.

Question 5

What do I pay back?

Accepted Answer

The landlord makes a small monthly payment (premium) and a final repayment at the end of 5 years.

Question 6

How much do I pay every month?

Accepted Answer

Typically 1/10th of the expected monthly rent. This is paid whether the property is rented out or not. The premium is adjusted annually by RPI + 1%. Example: If monthly rent is £3,000, you pay £300/month.

Question 7

How much do I pay as the final repayment amount?

Accepted Answer

If, for example, on a property with an initial value of £1MN, you receive 10% gross financing of £100,000, the final repayment at the end of year 5 will be 14% of the then market value of the property. Thus, if the property’s market:

Question 8

When do I make the final repayment?

Accepted Answer

At the end of 5 years, or earlier if you choose to settle early.

Question 9

What if I want to sell my property before the term ends?

Accepted Answer

You can sell at any time. The repayment to Pauzible becomes due upon the completion of the sale.

Question 10

Who is eligible for Pauzible's financing?

Accepted Answer

Owners of business BTL properties in England and Wales who reside in the UK. All financing is subject to proprietary underwriting criteria.

Question 11

Do you finance HMO and MUFB properties?

Accepted Answer

Yes, Pauzible provides financing for HMO and MUFB properties subject to underwriting.

Question 12

How quickly can I receive the money?

Accepted Answer

Potentially, funds can be disbursed within 3-4 weeks of submitting a completed application, subject to underwriting. Timelines may vary. Delays in providing all supporting documents, availability of a RICS surveyor to value the property, delay in returning proof of receiving independent legal advice or any other such factors may significantly affect how quickly Pauzible can disburse the funds.

Question 13

Who is the team behind Pauzible?

Accepted Answer

A team of professionals with over two decades of experience in mortgages, technology, and customer experience.

Question 14

What is the maximum LTV limit for the first mortgage?

Accepted Answer

In order for you to be able to receive a gross financing amount of 1/10th of the value of the property, the first mortgage can be up to 75% of the value of the property. If your loan-to-value (LTV) ratio is between 75% and 85%, we may still be able to help you unlock some equity in your buy-to-let (BTL) property. Contact us to find out how much you could potentially access.

Question 15

Can I unlock my wealth even if I do not have a mortgage?

Accepted Answer

Yes, but a first mortgage is likely to be a more suitable financing option than Pauzible in this situation.

Question 16

Are there any restrictions on use of the financing?

Accepted Answer

No, as long as the financing is used for a business purpose, such as furthering the BTL business.

Question 17

Which regions do you cover?

Accepted Answer

We cover England and Wales.

Question 18

What is the duration of Pauzible's financing arrangement?

Accepted Answer

Five years. Landlord can repay at the end of or any time during the 5-year period.

Question 19

What kind of properties are eligible?

Accepted Answer

Residential buy-to-let properties in England and Wales including detached, semi-detached, terraced, bungalows, end of terrace properties, purpose built leasehold properties, converted flats and maisonettes.

Question 20

Do you finance portfolios

Accepted Answer

Yes, Pauzible's financing is available for portfolios, subject to its underwriting criteria.

Question 21

How does Pauzible value the property?

Accepted Answer

Pauzible appoints an independent RICS surveyor to determine valuation. In certain cases, typically for lower-value properties, Pauzible may instead rely on an Automated Valuation Model (AVM) or a desktop valuation.

Question 22

Who pays for the valuation?

Accepted Answer

The buy-to-let landlord is responsible for the cost of valuation.

Question 23

Can I buy out Pauzible's share in the value of my property?

Accepted Answer

The landlord has the right to buy out Pauzible at any time during the 5-year financing period.

Question 24

Will Pauzible be responsible for any expenses such as maintenance, insurance or taxes?

Accepted Answer

No, the landlord is solely responsible for all expenses. Pauzible does not assume responsibility for any expenses..

Question 25

Are you authorised and regulated by the FCA?

Accepted Answer

Pauzible's business falls outside the scope of financial services regulation. Therefore, Pauzible does not need to be and is not authorised and regulated by the Financial Conduct Authority.