Mythbusting – #3 You probably can’t help me because I have bad credit

At CIS Mortgage Advice, we help CIS subcontractors get a much bigger mortgage from their gross income. I’m really passionate about showing subbys that being paid via the CIS scheme should be seen as a massive advantage to getting a mortgage, and never a hurdle to leap over. 

On my last video, I told you that being paid through your own LTD company was not a problem.

We recently spoke to a bricklayer that was recommended to me through another subby on his gang and the first thing he said was: 

‘You probably can’t help me because I have a bit of bad credit’ 

So myth number 3 for today is: 

‘You can’t get a mortgage using CIS gross income if you have a low credit score or some credit blips. 

We have successfully helped our subby clients in the past that may have had a low credit score because of either a lack of credit history, often because they’ve been in the UK for less than 3 years, or small blips on the credit record like mobile phone defaults, or a county court judgement from years ago 

So, to cover off this myth, it’s important to first understand that there are a really long list of mortgage lenders out there that we regularly deal with that understand how you are paid through the CIS scheme. Now some of these banks and building societies will only accept mortgage applications from a subby with a spotless credit record and with a high credit score  – but, and this is the big BUT  – there are plenty of other bank and building societies out there that can still work out how much you can borrow from you gross CIS income and don’t care about your credit score, as long as the history has no problems, or they make allowances for small defaults or CCJs as long as they are first registered over 6 months ago, 12 months, ago, or 2 years ago depending on the lender.  

So to summarise, no – having a low score or credit blips will not always prevent you from getting a mortgage from your CIS gross income.