Subbie Tip #21 – Are You As Well Prepared As You Can Be?
Are you mortgage ready? OK, we’re all busy people but there are some things that you just shouldn’t put off and getting all your paperwork together for your mortgage application is one of them! You need to get yourself ‘mortgage ready’ at an early stage and definitely before you start putting offers in on properties. Let’s face it, if you’re waiting weeks to receive back-dated CIS payslips before you can put in a mortgage application, there’s a real danger your perspective vendor will lose faith and put the house back on the market – I know I would!
The issue of gathering together CIS payslips is one I come across all the time. Typically, smaller construction firms only to provide them if you request them – and often, even then, you may need to keep reminding your boss that you’re viewing properties and need to evidence your income. These slips are vital if you want your mortgage lender to use your Gross CIS Income as the basis of calculating affordability; they will need to see them and your bank statements as evidence of earnings.
What happens if you simply cannot get your CIS payslips soon enough? Although your CIS Vouchers will always be a lender’s first choice as evidence, some are starting to appreciate that small construction companies don’t always have an automatic payroll system in place, and they will consider accepting invoices you’ve produced and delivered to your construction firm as an alternative. If your lender indicates that they are happy to accept your own invoices to support your mortgage application they will need to include specific information as follows:
- Your Name
- The name of the construction company you are invoicing
- Your UTR (Unique Tax Reference)
- Your NI (National Insurance) Number
- The date of the invoice and the time period it covers
- The gross payment due and what work it relates to
- Any deductions including 20% CIS tax
- The net income payable.
If you are a subcontractor and want to find out more about getting mortgage ready, get in touch today by phone on 08000 306705 or via email to: email@example.com
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE