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

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Can I get a CIS Subcontractor mortgage with my own limited company?

Can I get a CIS Subcontractor mortgage with my own limited company?

If you’re a CIS Subcontractor, but it’s your OWN limited company that receives the income, then this tip is perfect for you

Many other mortgage professionals may tell you that if you are Subby and draw a salary from your own company, then you cannot get a mortgage from the pre tax, CIS income, but they are wrong.

You are the company, and in the eyes of many lenders, This should not make the slightest difference. As long as you own 100% of your limited company, it’s solvent, and you don’t employ anyone else,

Now, back to work Subbys, you’ve got a deposit to save for.

Who can arrange a CIS Mortgage?

Who can arrange a CIS Mortgage?

Are you uncertain which mortgage lenders and which mortgage brokers can arrange a subcontractor mortgage? Are you worried that you may not be presented with the appropriate solution to buy your own home?

Most experienced mortgage brokers are likely to know where to place a Subby mortgage, but if it’s not a client type they deal with on a regular basis then they may not know how to manage some of the nuances that arise such as multiple CIS jobs, and being paid through your limited company.

This is why it’s important to get the right advice from an expert on this matter

Right Subbys.. Back to work.

Boost your Deposit

Boost your Deposit

Are you a construction Subcontractor and finding it tough to save a deposit to buy your own home

Here’s a really smart idea to boost your deposit.

Instead of declaring high profits to increase your mortgage, do the opposite. Keep your annual profits as low as your business expenses allow you to achieve and why??

Because you can use your pre tax income from your CIS payslips instead. Get a bigger mortgage from your gross income and get the maximum CIS tax rebate you’re entitled to which you can then use to boost your deposit.

If you want to find out how you can boost your deposit, drop a comment below or get in touch directly

Now. Back to work. You’ve got a deposit to save

Can I get a CIS mortgage if I work for two construction firms?

Can I get a CIS mortgage if I work for two construction firms?

Are you a CIS Subcontractor and struggling to get the mortgage YOU need because you receive TWO incomes, from two different constructions firms? – then YOU MUST watch this video.

Many mortgage brokers will tell you that you can only benefit from using your gross CIS income if you work for one construction firm at a time.

But guess What! – THEY, ARE, WRONG!
In my experience there are many subby friendly mortgage lenders that can combine all of your gross CIS income.

To further strengthen YOUR application, it would help if you have a good, provable track record with both constructions firms. I would suggest at least 6 months with each.

Right Subby’s, get off your phones and back to work!

What's a Subby Friendly Mortgage Lender?

What’s a Subby Friendly Mortgage Lender?

This is a phrase that i often used in previous videos, but never fully explained it.

In my opinion, these are lenders that do not use YOUR personal self assessment as the primary method to calculate mortgage affordability.

Instead, they will rely on the MUCH higher Gross income that’s paid to YOU from the construction firm YOU work for.

This income used for the the mortgage, is before 20% CIS tax AND expenses are deducted.

These mortgage lenders understand that subcontractors don’t have a written contract OR even a GUARANTEED income, and they also realise that many subcontractors will hop from job to job depending on where the work is.

From my OWN knowledge and the lenders I’ve worked with, there are over 10 Subby friendly mortgage lenders in the UK.

If YOU’RE a subcontractor looking for a BIGGER mortgage, then YOU just need to know where to look

Right Subbys.
Get off your phones
and back to work

How much can YOU borrow with a CIS mortgage?

How much can YOU borrow with a CIS mortgage?

Are YOU eligible for a CIS mortgage?

Are YOU eligible for a CIS mortgage?

If YOU ARE a CIS Subcontractor and struggling to borrow the amount YOU need because YOUR annual profits are too low, then this tip is for you.

Here are the questions that I follow when I speak to construction workers hoping to get a mortgage. This will help YOU work out if you’re eligible.

1. Have YOU worked in construction for at least 1 year.
2. Do YOU work for one or maybe two constructions firms instead of looking for YOUR own jobs?
3. Do YOU receive weekly, fortnightly or monthly pay with a 20% tax deduction?.
4. Have you been paid in this way for at least 3 months?

If you were able to answer yes to all 4 of these questions, then you may be eligible to apply for a bigger mortgage using your pre tax CIS income.

Right subbys!
Time to get off your phones.

CIS Is the best type of self employed?

CIS Is the best type of self employed?

It can be tough trying to get a mortgage when you’re self employed. But when you’re a self employed Subby, it can be a whole lot easier than you realise.

Now in my opinion, being a construction Subcontractor is the best type of self employed status when it comes to getting a mortgage.

You don’t have to produce two years of complicated accounts. You don’t have to have that awkward conversation with your accountant about ‘losing some expenses’ to increase your profit,which by the way is very naughty and I don’t condone it.

And you don’t have to spend hours on the phone queuing to HMRC to request complicated documents that take weeks to arrive in the post.

This is because as a Subby, in the majority of cases all you need to evidence your income is your last 3 months payslips and corresponding bank statements. Which are exactly the same documents required for a fully employed client.

Right Subbys
Get of your phones
and back to work

Higher rates for subbys?

Higher rates for subbys?

‘Surely the rates will be higher?’ is one of the common assumptions made by Subbys when looking to get a mortgage.

However, the brilliant fact is, you can get a mortgage based on your gross CIS income from certain high street banks and smaller building societies that offer the same interest rates to a regular employed person.

There are no special schemes for CIS Mortgages, no higher rates, just the same deal as everyone else can get. The only thing to be wary of is that each Subby friendly mortgage lender will have their own unique rules for subcontractors.

I hope that helps, I’d love to hear your comments.

Right subbys
get off your phones
and back to work

How many payslips does a CIS Subcontractor require to get a mortgage?

https://vimeo.com/470995886

How many payslips does a CIS Subcontractor require to get a mortgage?

Many mortgage broker will tell YOU that you only need your last three monthly payslips to get a mortgage, and whilst they are not wrong, it’s not the definitive answer.

This is because there are Subby friendly, mortgage lenders, that also require anything from 6 months right up to two year’s worth of CIS payslips before they can make a lending decision.

So, although you can get away with your last 3 months for a couple of lenders – they may not be the right mortgage lender for YOUR personal situation.

Often other Subby friendly lenders are required to fit your borrowing requirements. The type of the things that can influence the choice of lender might be

– The time of year. if your try applying for a mortgage straight after the new year, or an extended holiday, you’ll soon realise that your last three months doesn’t look great on paper
OR

– Credit history – a low score or poor history may lead you to certain mortgage lenders that require continuous income evidence over a far greater period of time.

– Lastly, evidencing your income over a longer period may help you access mortgage deals on better terms.

I hope that helps you. Now, back to work.

What Are The Three Hazards to Avoid?

What Are The Three Hazards to Avoid?

Subbys, just like the new apprentice on your site, you’re also at the start of your mortgage journey. If you make these 3 mistakes, you may find yourself struggling to buy the home that you need in the location you want.

So number 1. Using a mortgage lender that doesn’t cater for, or a broker that doesn’t fully understand subcontractor pay. Very simply you’ll end up with a smaller mortgage based on your annual profits.

Number 2. Paying casual labourers from your CIS income. Subby friendly lenders won’t accommodate this because your CIS income is now being split between more people.

Number 3. Multiple subcontractor jobs. It’s only a hazard if your mortgage broker places you with a lender that forbids this within there lending criteria.

So, avoid those mistakes, and i’m sure you’ll be fine. If you like this video please leave a comment below.

Right Subbys,
Get of your phones
Back to work

What If I have credit blips?

What If I have credit blips?

So, you’re a CIS subcontractor, you’re looking to buy your first home, you’ve just checked your credit file and…..
F@@@k, the bombshell hits, you’ve got some credit issues that you either didn’t know or have forgotten about.

In my opinion, A Subcontractor combined with some historic credit issues could be a nightmare case for many mortgage brokers to place.

However, even with this scenario, there are Subby friendly mortgage lenders that may still be able to provide your with a bigger mortgage based on your gross CIS income.

There’s likely to be stricter lending criteria regarding the age and magnitude of the credit problem. However, there is often a mortgage solution for this.

I hope that helps

Now, get off your phones,
and back to work.

Can I get a mortgage if I have been Under one year in the UK?

Can I get a mortgage if I have been Under one year in the UK?

Hello, Buna Ziua, and здравствуйте. One of the most amazing things about working with construction subcontractors is that I get to meet incredible people who have come to the UK from places such as Moldova, Romania, Lithuania and Poland and many from countries that I know very little about, but would love to visit.

Not every European construction worker wants to rent for the long term, and many would rather be paying towards owning their own home, instead of paying for the landlord’s mortgage.

So a common problem that you may discover is that many banks and even other mortgage advisors will tell you that you must have a minimum of three years residency in the UK before you can apply for a mortgage.

And whilst this may be true for some mortgage lenders, it is not a problem for all lenders

In fact, a very big subcontractor friendly lender that I regularly turn to for my CIS clients can help borrowers buy a home even with less than one year of living in the UK.

Just as long they as you have enough income on your CIS payslips and can pass the lender’s internal credit scoring system. Now that’s amazing.

Right Subbys
Get off your phones,
and back to work.

Do you need a master craftsman broker?

Do you need a master craftsman broker?

Are you a CIS Subcontractor and looking to get your first mortgage? Then it’s important to get expert advice from a specialist that understands the way you are paid and the issues that arise from Subby pay.

You just wouldn’t ask a handyman or Jack of all trades to build an extension with solid foundations, neat brickwork and expert wiring, most sensible people would hire in the expert needed for each discipline.

It’s the same with mortgages. If you’re a subcontractor, would you want to go a mortgage broker than knows a little bit about the Construction Industry Scheme? Or, would your hire in an expert that understand all of the nuances of Subby pay, including the lack of a guaranteed contract, the differences between day rate and price work, and how to place a Subby that is also the director of their own limited company.

Right Subbys,
Get off your phones
and back to work.

Could I use my tax refund?

Could I use my tax refund?

When a self employed person wants to buy a home, it’s not uncommon to work that extra little bit harder so that they can increase their annual profits, with the aim of getting a big enough mortgage to buy that home.

There’s always a balancing when declaring higher profits than previous years – and that’s with the tax bill.

For CIS subcontractors, if you go the the wrong bank, wrong lender or an inexperienced broker you may find yourself needlessly giving up thousands of pounds owed to you in tax refunds, when instead this could have been avoided.

This is because Subby friendly mortgage lenders do not calculate the amount you can borrow from your profits. Instead that rely on the gross income from your CIS payslips before any tax and expenses are deducted from your income.

In the vast majority of cases, your annual profits do not even feature on a mortgage application. So you can keep your profits low whilst borrowing enough to buy the home you really want.

Right Subbys
Get off your phones
and back to work

How can a Subby buy a home and keep it?

How can a Subby buy a home and keep it?

Your mortgage is sorted,it’s the biggest debt you will ever have and you’ve managed to get this approved based on your pre-tax CIS income; almost as if you were applying as an employed person. But, you work in construction, and there’s an element of risk on site, and occasionally things go wrong and whilst you are technically still self employed, you have no employer benefits to rely on.

If you have an accident, or a long term illness, you should always ask yourself these three questions.

1. Will I afford to pay my mortgage and the essential bills?
2. Will I afford to buy food for me and my family?
and 3. What nice things will I have to give up for me and my family?

There is a solution for Subbys, to ensure that you don’t lose the things that you’ve worked so hard to gain, which may include your home. This is known as income protection, or sometimes Sick pay cover, and it’s designed to pay you a monthly income in the event that you cannot do your job. If you are unable to work for the remainder of your working life, then this can potentially provide you with that monthly income to pay some bills, enjoy life and keep your home.

I hope that helps, if you have any questions then please comment below.

Right subbys
Off your phones
and back to work

Why is my mortgage lender so nosy?

Why is my mortgage lender so nosy?

Why does my mortgage lender need to know about my monthly payment to mum? Or, why I couldn’t pay my bills four years ago.

Why is the mortgage lender being so nosy? These are often questions that a frustrated client will ask me.

I believe that it’s important to understand why a bank asks so many questions and what they are trying to achieve by doing this.

All mortgage lenders are in the business of lending money, but they are all answerable to the Financial Conduct Authority. This means that they have a responsibility to ensure the mortgage is affordable based on your regular incoming and outgoing finances, and that no part of your deposit has come from the proceeds of crime.

If your mortgage lender is asking lots of questions about regular outgoings on your bank statements, it’s not because they are being nosy. It’s because they have spotted a regular outgoing that could mean that you will struggle to pay your mortgage and essential bills.

If your mortgage lender asks about historic credit problems and what series of events lead to financial issues. It’s not because they want to gossip about you. They simply just have to feel confident that it was a time in your life that you experienced financial difficulty, and you’ve since made a full recovery.

I hope that helps.

Right subbys,
Get off your phones
and back to work

Can I get a mortgage with less than 2 year accounts?

Yes, some lenders now accept the first year of trading plus a projection. In fact, with a good credit score, some banks do not even ask for a projection.

I only have a 5% deposit; can I still get a mortgage if I’m self employed?

Quite simply, yes.  Being self employed doesn’t mean that you need more deposit than your employed counterparts. You will find that with a 5% deposit the interest rates are higher, and lenders set the bar higher to pass their credit checks

I have some bad credit, can I get a mortgage?

It depends on what sort of bad credit, how long ago it was registered, whether it is satisfied, and the amount registered against you.  One or two late payments are unlikely to because you harm. If you have a default with a mobile phone company some lenders will overlook this because they realise how easily these companies give them out.  Lenders hate to see payday loans, debt management plans and IVA.

How long does it take to get a mortgage?

Mortgage lenders will identify the paperwork required to support the application. Once all of this is sent to the lender, expect the whole process to take between 7 and 10 working days. During this time, the property needs to be valued and will depend on the availability of the surveyor. More banks are moving over to a system of automatic valuations based on market data.

How long do I have to be contracting for before I can apply for a mortgage?

If you are a CIS contractor, you will need to be contracting for at least 6 months, of which the bank will take an average of your last 13 weeks income before tax. Any private jobs you do will be ignored. For other contractors, most banks will look for at least a year, and will expect to see that the contract has been renewed at least once.

I’ve been in the UK for less than 3 years – can I still get a mortgage?

The ability to get a mortgage largely depends on credit score and history. The longer you have been in the UK the more history you have. That said, some banks will allow less than 3 years in the UK, but be prepared to have at least 15% deposit.

I do a lot of cash jobs, can I use this income to get a mortgage?

As long as the cash is being accounted for and you are paying tax, then you can evidence this income to support a mortgage.

What paperwork do I need to apply for a self employed mortgage?

Standard ID documents will be required along with evidence of your deposit

If you apply as a CIS contractor you will need your last 3 months/13 weekly payslips and bank statements showing the income in your account.  You will need to provide both your business and personal bank statements. If you are applying as a sole trader or Limited Company Director, most banks will ask for your last two or three self assessments. Your accountant can obtain these for you, or if you self assess they are also available on you government gateway access.  You will need your SA302 document or summary page from the online account confirming‘100% Complete’. You will also need a document for each tax year called a ‘Tax Year Overview’

We Say Yes To CIS

Less than 1 year self-employed

5% Deposit

Less than 3 years in the UK

High day-rate with low net profit