Meet David Sharpstone
Your home may be repossessed if you do not keep up repayments on your mortgage.
Table of Contents
CIS Mortgage Expert, David Sharpstone introduces the company and talks us through the role of a CIS Mortgage Broker.
How are you different from other mortgage Mortgage Brokers?
Apart from a few big national brokers, most mortgage brokers (about 95%) are very similar to all the other brokers out there. What sets us as apart as CIS mortgage specialists is our level of experience and expertise in how mortgage lenders treat subby pay.
I’ve coined the phrase ‘subby friendly mortgage lenders’ because these are lenders that truly understand subcontractor pay. They work out mortgage affordability using the gross posted income, whereas most Mortgage Brokers don’t really understand it and try to work out mortgage affordability using the end of year tax returns. This always yields a much smaller result.
We use a number of subby friendly mortgage lenders for different circumstances, whether a subcontractor has their own limited company, a low credit score, they’re new to being self-employed, but have a history of working in environmental and construction industries. There are all sorts of mortgage lenders for all sorts of scenarios. We’re absolutely passionate about what we do and love working with subcontractors.
How do CIS subcontractors benefit from using you?
We will help you get a bigger and better home from your sub pay, because your average income from your pay slips before deductions is going to be massively more than what you could borrow if you were using a lender that doesn’t understand subby pay or just wants to work out mortgage affordability from your end of year tax returns.
Quite often, a suby that’s only been in the job for six months would be turned down by most mortgages lenders, whereas if you’ve got a minimum of three months worth of CIS paylips, it’s possible to get a mortgage. There are other circumstances that we have to factor in, like how long you’ve worked in the industry, but generally speaking we can get mortgages for First Time Buyers and home movers.
We love working with some of the the government schemes as well, such as Shared Ownership and we can combine that with CIS lenders as well. We also work with property investors, it’s not our speciality, but we do a fine job of it and there are no special circumstances for property investors who happen to also be CIS workers.
Can you also assist with things like mortgage protection?
The one question I ask our clients is how much sick pay their employer pays, because I know they don’t get any sick pay and in an industry where injuries can happen, you need to be well or else you don’t earn an income.
We always recommend sick pay cover specially designed for subbies. Not every insurance provider would treat every subcontract the same in terms of how much they can benefit, but we’d have to have a conversation on an individual basis.
How can you assist someone with bad credit?
We’ve got CIS subby friendly mortgage lenders for those with low or bad credit too. Whether it’s just a low score because maybe they haven’t been in the UK for long enough or they have no credit history. You actually need to build your credit score and there’s different methods for that.
One subby friendly mortgage lender doesn’t actually credit score and we do a lot of business with this particular lender. If you’ve got CCJs and Defaults, we do have lenders that will work out mortgage affordability from CIS income with CCJs, Defaults, IVAs and payment plans.
Do subcontractors have to pay a higher interest rate?
No, you’re going to get the same great rates. Unfortunately rates have gone up in the last few months and they’re continuing to go up, but you’re going to get the same rates as anybody who is employed. You are not going to get penalised for being a CIS subcontractor.
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How many payslips does a subcontractor need?
It depends on the lender you know, with up to 15 lenders that we work with regularly who understand subby pay some will ask for the last three months and take an average across it, some will take six months. We have quite a few lenders that will look at the income over a whole year. We even have lenders that would look at the last twenty four months worth of pay slips. Three months is usually the minimum.
What’s your process to work out how much somebody can borrow?
We start with a strategy call at a time that’s convenient for the subcontractor, and we work evenings and weekends to try to be flexible because we know the site managers don’t like phones. We need to find out what your hopes are and what you want to achieve and that’s going to guide the whole of the process.
The call lasts 20 to 30 minutes and we’ll talk about their CIS income, whether you’re a Sole Trader, a limited company or a Partnership. Whether you get paid on price work to get a weekly, fortnightly or monthly payslips. We can’t commit to saying you can borrow x amount of pounds until we’ve seen paperwork, but we can get a feel for how much they might be able to borrow if they’re able to provide us with some rough figures.
The subcontractor will then send us what we call ‘the magic four’ which would be a copy of the passport, proof of income (three, six or twelve months payslip, depending on what’s disclosed during that conversation), and a credit report. All that information up front gives us the best success rate of getting the maximum mortgage that the buyer needs in the most efficient time.
We’ll come up with some different options depending on what they want to buy, how much deposit they’ve got and then approach the mortgage lender. Then we get the Mortgage in Principle and send it via email to the buyers so that they know exactly what their buying power is.
When should I see a CIS Mortgage Broker?
You should certainly get in touch with a CIS broker when you want to start looking at properties. If you’re thinking of buying in the next six to twelve months, now’s the time to have a conversation.
When was CIS founded and how long have you been in the industry?
I’ve been a Mortgage Broker since 2007, but I decided to specialise in CIS Mortgages about 2016, which was when we launched CIS Mortgage Advice as a brand and focused on subcontractors and tradesmen.
Does it cost for an initial consultation with you?
We do not charge a fee to have an initial conversation or even to send us the documents and go through an assessment. There’s no cost until the stage where you ask us to look into it a little bit more and apply for a mortgage, then every circumstance is different. If you read our reviews online, you’ll see we provide a real quality service.
Your home may be repossessed if you do not keep up with your mortgage repayments.