Self Employed

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

Self-employed mortgages made easy

In the past, mortgage lenders made it difficult for the self-employed to secure a mortgage. But times are changing, as the relative security offered by being employed narrows against someone who is self-employed.
1 in 5 people working in the UK today are self-employed or work on a ‘zero-hour’ contract; so demand for mortgages in this sector has gone through the roof – self-employed borrowers took out 120,000 new loans in 2017 alone!

That’s a big market, and lenders are responding by relaxing their criteria, removing hurdles, and making it easier to secure a mortgage.

Already, a handful of mortgage lenders have changed their lending criteria to allow self-employed workers to apply for a mortgage with just a single year’s trading accounts, including several major High Street banks. (Previously, they demanded accounts for 2 or even 3 years.)

If you do have only one complete year of trading, obtaining a projection of future earnings from a chartered accountant can give a mortgage lender the additional reassurance they need to confirm a mortgage. (But be prepared, in the vast majority of cases, securing a mortgage with just one year of accounts will also depend on having a squeaky clean credit history.)

In truth, the success of a mortgage application for a contractor or self-employed applicant often comes down to using an experienced mortgage broker, someone who fully understands your financial position, and is able to present the strongest possible case to an underwriter. That’s where we come in.

Subbies and Contractors

Many mortgage lenders have also lowered their barrier for subbies and contractors. Whether you’re an IT contractor, a railway engineer or a bricklayer, it’s now possible to get a mortgage based on your day-rate, or the value of your current contract.
Some banks and lending institutions now use gross income to calculate the amount you can borrow for your mortgage, rather than historic tax accounts. But bear in mind, a mortgage lender will typically assume a year has only 48 working weeks.

A successful application often depends on a good track record in a single line of work, with at least 6 months left to run on an existing contract, and that contract having been renewed at least once already. Some banks will even write to the hiring firm, in order to confirm the likelihood of the contract being renewed again in the future.

But if you’re in the CIS Scheme, you can access more favourable criteria. You won’t need a fixed-term contract, and often won’t be asked to demonstrate a lengthy track record.

Indeed, with the help of an experienced broker, some High Street banks now grant a mortgage based on the average of a CIS contractor’s gross income over the last 13 weeks.

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

Becca larkin
Becca larkin
11:19 18 Oct 19
If you are thinking about using CIS mortgage, 100% do it! I can't explain how happy my partner and I are with the service. After seeing a previous mortgage adviser who told us we couldn't get a mortgage, David, within days got us a mortgage. So pleased with the outcome and it was so refreshing to speak to someone who completely understands CIS through and through. Amazing!!!read more
Ruaridh black
Ruaridh black
13:56 24 Aug 19
Went directly to a bank for a mortgage with my cis statements and they didn't even consider giving us the mortgage. Me and my wife were gutted as it was our dream home and one we could start a family in together. Thanks to David here we managed to get a mortgage and got the house we wanted! We are now expecting our our first child and in our dream home! Wouldn't have been possible to get the house/mortgage without them so very appreciative. Fast and professional and would recommend them to anyone who works under the CIS payment scheme and are self more
P. Jiten
P. Jiten
09:56 17 Aug 19
For CIS self employed people this is the best company in UK. Got mortgage in principle certificate after submitting required documents and mortgage approved in 10 days after submitting file. Hassle free process throughout and any question or query promptly answered. David and Lisa are amazing people to work more
Michelle Perrin
Michelle Perrin
09:28 17 Aug 19
My husband and myself have been dealing with David since our first property purchase in 2012. David has a vast amount of knowledge, has always put us at ease and answered our questions throughout the process. David is great to deal with, always goes above and beyond and we have already recommended him to several of our friends and family, one of which is nearing completion of their first home. Always fantastic service, highly recommend CIS Mortgage Adviceread more
Veronica Grosu
Veronica Grosu
09:36 12 Aug 19
Fantastic service from start to finish. David made it simple and effective for us. We are very happy with the outcome. I would definitely recommend!read more
09:23 18 Jul 19
David has been faultless from the beginning and helped me and my girlfriend out loads and without him we would not be moved into the house we are in now. He understands the difficulties of being a CIS worker with mortgages and gives you the best advice he can and is very quick on the ball at getting stuff sorted. My case I appointed him for was more complex than most I would say due to being self employed and having a limited company but he had no trouble with achieving me a great mortgage deal and borrowing amount with the information I gave him. It has been a pleasure to deal with david through buying this property and I shall definitely be using him on any future purchases or remortgages. Nothing was ever to difficult for him and he was always just at the end of the phone when you needed him even after his working hours he went above and beyond by helping me with help to buy more
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Company Directors

Many self-employed workers set up as a limited company on the advice of their accountant, making themselves a director of the limited company and using this as a tax efficient payment route.

In the majority of cases, banks calculate borrowing potential from an average of personal income over the past 2 or 3 years – which is normally the salary you’ve drawn, plus any dividend. But this can be counterproductive if you want to fund expansion by leaving plenty of retained profit in the business. Because although turnover in the company has been high, this minimises your personal drawings. So, if that is the point in time you want to take out a mortgage, your true potential earnings as a director of a small limited company are not properly represented by the bank, as they disregard the retained profit.

But when working out the maximum mortgage you can be permitted, our team of expert mortgage advisors have lenders that will factor in these retained profits. And using profits plus salary often yields a much larger mortgage loan!