Commercial Mortgage with HiP

Looking into buying a commercial property? We outline everything you need to know about applying for a commercial mortgage, and what HiP can bring to the table.

    

OUR EXPERTISE

What is a commercial mortgage?

If you’re looking to buy property for a business, you’ll more than likely need a commercial mortgage. But because a mortgage on a commercial property will earn an income, the approach to buying a commercial space is a lot different to buying residential. Your mortgage deal will alter depending on what type of building you’re looking at buying – whether it’s a shop, offices, warehouses and development land, because when you apply for a commercial mortgage, the assessment will focus on the value of the property, how much rent it could realistically yield and the businesses that will be based at the address.

It’s these three things that give a property its value.

Is commercial property a good investment?

Many investors and landlords have been focusing more on commercial property investments than residential over the past few years, particularly after the recent reduction of tax relief wiped out their buy-to-let profits. Commercial property presents an attractive option to prospective buyers for a number of reasons, not least that their income will be far greater on a business workspace than a residential property.

What do I need to know in order to go ahead with a commercial mortgage?

Getting to own a business property is far from straightforward. There are a number of things you need to bring to the table to be accepted for a commercial mortgage. Most lenders will need the following from you.

– Three years of audited or certified accounts, plus current management figures – if you have them.
– Two months’ worth of bank statements
– An assets and liabilities statement
– Last three months’ payslip and latest P60 if you’re an employee

Once you have these you’ll be able to push through with the application. Most lenders will apply a few terms to the loan, if the application is successful. These include:

– A business mortgage of over £25,000
– Fixed rate terms from 1-10 years
– Prepayments fees, or early payment fees, will apply if you pay all of your loan before the end of the terms agreed.

"Hip has incredible potential. It brings accessibility and transparency to the property market for owners, occupiers, investors and developers, and allows them to take control and leverage the balance of their debt to equity to their own advantage."

Paul Danks,

Newmark Grubb Knight Frank

“HiP could solve the UK housing crisis”

Peter Bill,

Author of Planet Property

"It’s a game changer, and a very exciting one."

Sophie Eastwood,

Global board director of Young Entrepreneurs in Property (YEP) and founder of specialist property PR consultancy, Holistic

Other key points you should know about

Further fees will also apply to any commercial mortgage, see below;

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Rates and fees

One of the many aspects commercial mortgages differ to residential, is the sharp rise in fees. Bear in mind that commercial mortgage fees are generally a lot higher than those incurred in buying a house
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Valuation fee

When you apply for a mortgage on a commercial site, the lenders will send a valuer over to the premises or site to be valued. These are usually more expensive than residential valuations, because commercial sites are generally more complicated to value than houses. This will normally be paid during the mortgage application process.
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Legal fees

With commercial mortgaging, you not only have to pay the fees of your own solicitor but also the legal fees incurred by your lender too. Again, these fees are usually a lot more expensive than the solicitor fees on a residential mortgage.
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Lender arrangement fee

This is a charge for the lender for arranging the finance. You may be given the choice to add this on to the loan or taken off the loan when you complete.
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Valuation fee

When you apply for a mortgage on a commercial site, the lenders will send a valuer over to the premises or site to be valued. These are usually more expensive than residential valuations, because commercial sites are generally more complicated to value than houses. This will normally be paid during the mortgage application process.
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Broker fees

If a mortgage broker has been involved, there will usually be a brokerage fee too. Often, depending on the complexity of the case, there may be an additional admin fee that the broker charges.

WHAT WE AIM TO DO

BUT WHAT IF THERE WAS A DIFFERENT WAY?

With HiP, we do things differently. We focus on rising property value, rather than your employment history. HiP can help people achieve their goal of getting a home to let, even if you currently have no job or are self-employed. We think it is more important to allow homeowners to access their home equity more quickly and easily than ever before so they can fulfil their ambitions. Previously, getting your hands on your equity meant either selling or remortgaging.

HIP LIKES TO DO THINGS DIFFERENTLY

We allow you to tap into as much or as little equity as possible, for whatever reason. And by the simple act of letting people access their property wealth, exciting things can happen. Equity in your home can supply the deposit needed for your buy-to-let mortgage for example. So you can take out what equity you need from your existing property to put towards a deposit – all without selling or going through a lengthy remortgaging process.

NOT ONLY THIS…

You can open up your new house onto the hip exchange and trade equity with a network of investors. Which means you could buy a property that the traditional mortgage lenders deemed out of your price range. All this without losing ownership of your property.

AND THERE’S MORE…

This easy access of equity allows you to avoid taking out expensive loans to cover costly repairs such as re-roofing one of your properties, repairing any flood damage etc. When large sums of money are needed for a big repair or renovation job, you can pull out equity on any homes you may own to cover the costs. This flexibility allows you to comfortably maintain your houses, with the security of rental income and increasing equity that you can count on on a rainy day. In fact, thanks to hip re-working the rules on home ownership and unleashing equity, being a property landlord has never been so attainable.

HOW YOU BENEFIT WITH HIP

HiP is the NEW Way
to finance property

HiP Property: Our Aims

Reinvent the way you look at property investment

HiP is hugely beneficial to property owners, changing the way we can use bricks and mortar into something with far more fluidity than ever before. It is a debt and equity exchange, with investors all over the world interested in putting their money into property.

Turn Your Property Into a Bank Account

For you, this means a democratised property market; withdraw money from equity without moving, borrowing or losing ownership, use your equity to cover your monthly mortgage repayments, or trade your equity against your mortgage.

Flexibly in the high-yield property markets without limits

We allow you to do all this, and much more, without the penalties, costs and charges that a traditional lender would impose. Whatever your property investment or finance needs may be, HiP is on hand to help you take your next step.

HiP is regulated by the FCA

HiP UK will be regulated by the FCA*

And have an agreed licence for trading in the UK and Europe. *As we go live these permissions are being reviewed.

HiP is based in London

HiP UK is based in London.

HiP's 20+ staff operate from Camden, London. With registered address in Bristol.

HiP is award winning

HiP is award winning

We have won an awards and been shortlisted for more. We came second in the worldwide PropTech Innovation Awards and as Bronze in the Digital Impact award 2017 for “Best use of digital by sector”.

What people are saying about HiP

HiP is creating a buzz in the property world, but especially in the first time buyers market.

"Hip has incredible potential. It brings accessibility and transparency to the property market for owners, occupiers, investors and developers, and allows them to take control and leverage the balance of their debt to equity to their own advantage."

Paul Danks,

Newmark Grubb Knight Frank

“HiP could solve the UK housing crisis”

 

Peter Bill,

Author of Planet Property

"It’s a game changer, and a very exciting one."

Sophie Eastwood,

Global board director of Young Entrepreneurs in Property (YEP) and founder of specialist property PR consultancy, Holistic

Register your interest

Just fill out the form on this page now, and you’ll be the first to find out about HiP, which we are busy creating. We can’t wait for you to join the property revolution.

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HIP INTERACTIVE PROPERTY LIMITED.,
6.20 World Trade Center,
6 Bayside Road, Gibraltar, GX11 1AA.
Company # 116550.

HIP INTERACTIVE PROPERTY UK LIMITED is registered in the UK, and adheres to The Standards of Lending Practice.

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