CIS Mortgage Advice

We specialise in Mortgage Advice for Subcontractors paid via the Construction Industry Scheme (CIS)

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Most buy to let mortgages are not regulated by the Financial Conduct Authority

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FIND THE RIGHT CIS OR SELF-EMPLOYED MORTGAGE FOR YOU

If you’re a Construction Industry Scheme (CIS) subcontractor, you may find it a struggle to find the right mortgage for your individual needs and circumstances. This is because as a contractor, your income may not be as steady as someone who is employed full time. But don’t lose hope, as we specialise in providing mortgage advice for subcontractors paid via the Construction Industry Scheme to ensure that contractors do not get a raw deal and get the right mortgage for their needs.

CIS Mortgage Advice, Expert Mortgage Advice for CIS Subcontractors
CIS Mortgage Advice, Expert Mortgage Advice for CIS Subcontractors

WHAT DOES A CIS MORTGAGE BROKER DO?

CIS Mortgage Expert, David Sharpstone introduces CIS Mortgage Advice and talks us through the role of a CIS Mortgage Broker.

Apart from a few big national brokers, most mortgage brokers (about 95%) are very similar to all the other brokers out there. What sets us as apart as CIS mortgage specialists is our level of experience and expertise in how mortgage lenders treat subby pay.

I’ve coined the phrase ‘subby friendly mortgage lenders’ because these are lenders that truly understand subcontractor pay. They work out mortgage affordability using the gross posted income, whereas most Mortgage Brokers don’t really understand it and try to work out mortgage affordability using the end of year tax returns. This always yields a much smaller result.

We use a number of subby friendly mortgage lenders for different circumstances, whether a subcontractor has their own limited company, a low credit score, they’re new to being self-employed, but have a history of working in environmental and construction industries. There are all sorts of mortgage lenders for all sorts of scenarios. We’re absolutely passionate about what we do and love working with subcontractors.

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Instead of making the process of getting a mortgage for subcontractors gruelling, we aim to take away the stress and hassle from it. To reduce your tax liability, your bookkeeper or accountant will usually advise you to record all your business-related expenses. However, this poses a problem when it comes to seeking a mortgage as banks use your net profit after expenses to calculate how much you can borrow. This typically yields a much lower borrowing figure in comparison to what is offered to someone employed full time.

The reason why some banks treat you like this is that they do not fully understand your status – but luckily, we do.

At CIS Mortgage Advice, our specialists’ mortgage advisors calculate how much you can borrow based on your daily rate of pay, rather than the profit you show the taxman after your expenses. We can also achieve a better level of borrowing, by placing your mortgage with a lender that is familiar with the CIS Scheme.

All you need to do is give us five minutes of your time and we can show you how.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

If you’re wondering whether you qualify for a CIS mortgage or not, ask yourself these simple questions:

  • Are you a self-employed builder, decorator, electrician, heating engineer, or other role working in the construction industry?
  • Do you work for a construction firm that deducts 20% of your salary for tax?

If you answered yes to these two questions, then you are paid through the Construction Industry Scheme (CIS) – and we can help you get a mortgage.

For our clients, the following circumstances are normal:

  • Less than 1 year self-employed
  • 5% deposit
  • Less than 3 years in the UK
  • High day-rate but low net profit

As long as you are on the CIS Scheme and have 3 months’ worth of continuous payments and a good credit record, then we can help you get a mortgage based on your average day-rate.

Don’t worry if you’ve even had a few minor credit blips in the past; or have yet to complete your first self-assessed tax return: we can still help.

 

A CIS worker is the middle ground between being truly self-employed or permanently employed. However, most mortgage lenders treat CIS subcontractors as self-employed, and before considering a mortgage application they will ask to see accounts for at least 2 and perhaps even 3 years. But what if you’ve been contracting less than a year?

If you’ve only recently become a CIS subcontractor, most high street banks or mortgage brokers would penalise you for it. They struggle to find a mortgage suitable for someone who has a continuous record as a CIS subcontractor running for less than 12 months.

But, we are different. We are on your side and we understand that you might have changed profession, or maybe a previous employer offered you better terms or enhanced salary if you’d switched to becoming a contractor – these things happen. Where others may have failed you, we are confident we can find a suitable mortgage after you complete our fee free, no-obligation telephone assessment.

So if you’ve only been a subcontractor, or self-employed, for less than a year, our initial mortgage advisers can even help you get a mortgage without having to complete 2 or 3 years of accounts.

Even if you have managed to save just 5% of your expected purchase price, have a small CCJ or a default registered more than two years ago, we can still help you get a mortgage.

Our mortgage advisers will ask you a detailed set of questions about your circumstances and if there is less than perfect credit record you must be prepared to explain the situation around each negative point – this will help our advisors build a case to support your application for a mortgage.

But they must know all the facts about you and your credit situation, because only then can they mount a successful challenge for a mortgage, based on your day-rate. So, if you have any bad credit, no matter how minor, obtain a copy of your credit report and present it to your mortgage advisor.

Whether you ready to buy now, are just planning ahead in order to buy a new home in the future, call us; or send an enquiry and have one of our experienced CIS mortgage advisers call you right back.

If you’re coming up to the end of your fixed mortgage period, you’ll need to remortgage. We can give you CIS Remortgage advice on what you options are when it comes to remortgaging.

Regardless of your circumstances we can help you. Our mortgage advisers will ask you a detailed set of questions so we’re able to find you the most suitable deal for your situation.

 

The simple answer is that different lenders apply different calculations.

Typically, it is the average of the gross amount you were paid over the last 3 – 6 months (before the CIS 20% deductions).

This figure is then annualised, to give the lender an indication of the amount you would expect to earn over the course of a year.

You may be able to borrow around 5 times this figure on a mortgage, on average.

It’s possible to get a mortgage with a deposit as low as 5%, however, as with most mortgages, the higher the deposit, the better rate you’re likely to achieve. A lender probably prefers you to have a deposit between 10% and 20%.

CIS Mortgage Advice, Expert Mortgage Advice for CIS Subcontractors

ABOUT CIS MORTGAGE ADVICE

If you’re reading this as a CIS contractor, then you or your partner are probably struggling to find a mortgage right now. We can help. 

If you’ve only been a subcontractor, or self-employed, for less than a year, then our mortgage advisors can even help you get a mortgage without having to complete 2 or 3 years of accounts.

Give us just five minutes of your time, and we can advise you how much you may be able to borrow on a mortgage.

Contact us today and one of our mortgage advisers can give you an initial Fee Free, no obligation telephone assessment. During this initial call we will calculate how you may borrow based on your CIS day-rate before tax, instead of using an average of your last two year’s self employed income which most banks will ask for. Subject to providing us with evidence of your income and identification we can even obtain an instant provisional lending agreement

CIS Mortgage Advice provides expert mortgage, protection and insurance advice. CIS Mortgage Advice is a trading name of Just Mortgages Direct Limited and CIS Mortgage Advice is the name under which we carry out these services.

CIS Mortgage Advice is not a business in its own right, it is part of Just Mortgages Direct Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited. Just Mortgages Direct Limited was set up in 1989 and has been part of The Openwork Partnership since 2016.

The Openwork Partnership is one of the UK’s largest Financial Advice networks, with over 4,500 advisers an in excess of 700 appointed representatives based throughout the UK.

Our advisers at CIS Mortgage Advice will get to know your individual circumstances, establish what your goals are and what the right mortgage and protection arrangements are for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE