About CIS Mortgage Advice
If you’re reading this as a Construction Industry Scheme (CIS) contractor, then you or your partner are probably struggling to find a mortgage right now. We can help.
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
If you’ve only been a subcontractor, or self-employed, for less than a year, then our mortgage advisers 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.
Instant mortgage decisions for all CIS Subcontractors
Subject to a Fee-Free no-obligation assessment
If you complete a self-assessed tax return for HMRC, and pay 20% tax at source through a construction firm, then you are part of the CIS Scheme.
Most CIS subcontractors do find it difficult to borrow sufficiently on a mortgage, because most banks make their lending decision based on your profit after expenses.
In addition, most banks require more than two years’ evidence of income to make a lending decision, giving a double-whammy to CIS subcontractors.
We say ‘YES!’ to CIS
Although we can’t guarantee you’ll get a mortgage, we are proud that we have helped 100’s of CIS subcontractors buy their dream home since 2010.
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 offer 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!
Seriously Competitive rates from High Street banks
Our friendly mortgage advisors are all experts in the CIS Scheme. They understand that you are neither employed, nor self-employed – but somewhere in between.
We use your average day-rate to calculate exactly how much you can borrow, and only place your CIS mortgage with a High Street bank.
In most circumstances, you can borrow up to 5 times your gross annual salary, and access the same fantastic mortgage rates available to someone who is directly employed.
How much can I borrow?
The simple answer is that different lenders apply different calculations.
We work with lenders that take 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 are able to borrow around 5 times this figure on a mortgage, on average. Other brokers and lenders might calculate your income based on net profit, which allows you to borrow significantly less.
If you’re a subcontractor in the construction industry you’re in a good position when it comes to mortgages. With a CIS mortgage you might be able to borrow 5 times your annual CIS income.
A CIS mortgage is a product offered specifically to subcontractors who are part of the Construction Industry Scheme (CIS). Often, a contractor with a CIS mortgage can borrow more than a typical Self-Employed worker.
That’s because with a Construction Industry Scheme mortgage, a lender bases your mortgage loan amount on your gross income – that is, before you pay tax and national insurance. This usually means a higher value loan and sometimes, more favourable mortgage rates.
It’s a positive option if you work for yourself, as many Self-Employed people can sometimes find it challenging to get a mortgage product that meets their needs exactly.
CIS mortgages are very competitive because lenders recognise that so many contractors in the construction industry generate a steady income and run successful businesses.
You’re eligible if you run your own business and have signed up to the Construction Industry Scheme.
You will need to meet various criteria to qualify, however. Usually you need at least a 5% deposit, but it’s possible to get a CIS mortgage if have been Self-Employed for less than a year, and to have worked in the UK for less than three years.
The first step is to find lenders that offer mortgages for CIS workers. There are a number in the marketplace, so working with a broker like us will help you explore all the options.
We will look at fees, rates and criteria to recommend the deals that meet your specific situation. We will help you get a Mortgage in Principle so that you are ready to make an offer on a home.
Once you’ve found a property to buy, our expert mortgage advisers will manage the mortgage application process for you, keeping things simple and stress free.You might need a few documents in the process of applying for a mortgage, to prove your annual income figure. You will usually be asked to provide the latest year’s accounts – sometimes more – or your self assessment tax returns.
Lenders may also ask for details of your current contracts and for recent CIS payslips.
CIS Mortgages are usually a good option for a registered subcontractor, but there are a few disadvantages to consider too.
Pros of a CIS Mortgage:
- You can often borrow a higher mortgage amount
- Rates are usually competitive
- Lenders understand how subcontracting works
Cons of a CIS Mortgage
- Fewer lenders offer CIS mortgages, which means there are fewer options
- Sometimes rates on a CIS mortgage are higher than on a standard deal
To get you the a competitive deal we will compare all the options across both CIS mortgages and standard products. We will make sure that the repayments on your mortgage are comfortably affordable, and base our recommendations on fees and charges as well as monthly interest rates.
Credit scores are an important part of how lenders assess you for a mortgage. Bad credit isn’t necessarily a barrier to a CIS Mortgage, but it does depend on the severity and timing of your credit issues.
If your business is doing well and your credit score looks to be improving, various mortgage providers may still offer you a good mortgage deal.
Major issues such as bankruptcy or unpaid CCJs within the past six years could affect your eligibility, however. We will give you tailored mortgage advice based on your specific circumstances.
We’re here to help you find a mortgage deal that works for you – and can reach a large number of lenders on your behalf. Some CIS mortgage products are only accessible via a broker.
Our team of mortgage advisors have helped lots of CIS workers find a suitable mortgage deal that works for them. By getting to know you and your business, we can explore all the details to achieve your property goals.