Subbie Tip #9 – Does My Evidence Of Income Get Me The Right Mortgage?

It’s important that your income evidence meets the requirements your mortgage lender will be looking for in order to get you the right loan.

This is really important because you don’t want your application to be rejected because of apparent discrepancies.

It goes without saying that in my role I help hundreds of CIS Subcontractors obtain mortgages, which means I’m also very familiar with the things that can go wrong!  It is the case that many construction firms, particularly the smaller ones, still run a manual CIS payroll with one person, often the Boss, making the payments.  This can lead to small banking errors which may not be noticed by you, particularly if you’re not automatically provided with CIS payslips.  Why does this matter?

When I submit a mortgage application to a lender, I present a dossier of evidence to support the application; one extremely important element of which will be CIS payslips and income mandated bank statements.  Some lenders will look back over the last 52 weeks of income and may raise queries where they find that net income shown on your bank statement is even a few pennies different to that shown on the relevant CIS payslip.

When these queries are raised it is important that you, the applicant, can provide me with a robust explanation that I can take back to the lender.  Often the discrepancies will be the type of payroll error we’ve talked about or it could be that you were accidentally underpaid one week with an adjustment being made the following week.  It could even be as simple as being paid additional expenses within the payment made to the bank.

All of these discrepancies, whilst they may cause a delay on your application, are fine so long as you are ready with a clear explanation that allows mortgage lenders to understand what’s gone on – in which case it will be unlikely to affect the outcome of your mortgage application. 

Of course, ideally, you want to avoid discrepancies altogether and the best way to do this is to check in advance that your CIS vouchers and bank statements do correspond before you even send them to your mortgage adviser.  This gives you a chance to deal with any discrepancies you spot by speaking to your construction firm to either get amended paperwork or at least an explanation ready so advisors like me are aware and able to present the best and clearest information and evidence to your potential lender.

To discuss this in more detail or to get advice on any aspect of applying for a CIS gross income based mortgage simply give me a call on 08000 306705 or drop me an email to:  david@cismortgage.co.uk

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