Insights
Thoughtful insights to help you get more out of Pauzible.
08/04/2025
Fractional Selling: A Real Solution to the Mortgage Rate Crisis Facing UK Homeowners
The housing market has always been a subject of debate in the UK, given its historic importance to both personal wealth and the nation's economy. The current mortgage rate crisis, caused by the drastic rise in UK mortgage rates since December 2021, has plunged many homeowners into a sea of uncertainty and stress.
08/04/2025
Towering Rents of UK rental towers
In the past year, private rents have increased so dramatically that many young renters have been forced to move back in with their parents. The easiest conclusion to draw would be that this is due to the greed of landlords, who have increased the rents they charge despite the widespread suffering caused by the worst inflation in decades. However, the data show otherwise.
08/04/2025
Refinancing Challenges in the Buy-to-Let Market
Buy-to-let mortgages are typically “interest-only”. Under these, the entire loan amount is repaid in a single instalment at the end of the mortgage term. Interest, however, is paid throughout the life of the mortgage on the entire loan amount. The mortgage rate is typically reset every two or five years.
08/04/2025
Financial Pressures on Buy-to-Let Landlords
As a BTL landlord, after making your initial investment, you expect to receive a stream of net positive cashflows throughout the life of the investment and capital gains from an appreciation in the value of the property when you eventually sell it.
08/04/2025
What is Equity Release? A Brief Guide for UK Homeowners
Homeowners realize their home equity when they sell their property. However, some financial products enable homeowners without mortgages or with very small mortgages to obtain cash against the value of their home equity without having to leave their property. These are referred to as “equity release” products.
08/04/2025
Switch rates or Remortgage? A Real Dilemma
Towards the end of the relevant mortgage rate term, the lender provides the borrower with a new set of two and five year mortgage rates. The borrower selects a new mortgage rate to be applied for the next term of two or five years. This process of selecting a new mortgage rate every two or five years occurs throughout the life of a mortgage is referred to as “rate switching” or “switching rates” or “choosing a deal”.
08/04/2025
Fixed vs. Variable: Choosing the Right Mortgage Rate in the UK
A “fixed mortgage rate” is one where the mortgage rate that is fixed at the outset does not change during the relevant fixed mortgage rate period, for example, two or five years. It is not unusual for slightly higher fixed mortgage rates to be offered without the requirement to pay any associated product fees and relatively lower fixed mortgage rates to be offered with a requirement to pay associated product fees.
08/04/2025
Trends and Predictions for UK Mortgage Rates in 2024
Understanding the dynamics of mortgage rates in the UK involves delving into some of the workings of the Bank of England (“the Bank”), as it wields considerable influence on the financial landscape of the country.
08/04/2025
Pauzible’s perspective on the UK property market
While one can’t claim to have a crystal ball for predicting the future, several factors indicate support for house prices in the UK. Let’s draw some insights from the US and compare them to the UK’s outlook.