How We Help CIS Contractors Secure Mortgages

If you’re a CIS contractor struggling to meet traditional mortgage criteria, Connely Roberts Mortgage Services can help. Unlike most lenders or brokers who require two years of income proof, we use your CIS wage slips or invoices to assess your income, instead of tax returns. By annualising your income using just 3-12 months of wage slips, we can usually offer higher borrowing amounts.

Our approach includes:

– Flexible income assessment using CIS slips.

– Simplified paperwork, avoiding the need for 2+ years of self-employed accounts.

– Access to competitive rates tailored for CIS contractors.

By focusing on your gross income rather than net profit, we can increase your borrowing potential.

Find Out How Much You Can Borrow

What’s Different about a CIS Contractor Mortgage?

There is no difference between a CIS Contractor mortgage and a traditional mortgage when it comes to the rates or lenders available, the difference is in the way we would evidence your income. Not all lenders will allow the slips / invoices to be used as proof of income, so it’s important to speak with an experienced broker in this field.

Are You Eligible for a CIS Contractor Mortgage?

Eligibility for a CIS contractor mortgage is more straightforward than you might think. You’ll typically need:

  • At least 3 months of CIS wage slips or invoices.
  • 3 months bank statements matching the invoices sent
  • 12+ months of experience in your industry either current or potentially historic

Our team will guide you through every step to ensure you meet the requirements.

Other standard criteria applies.

 

CIS Mortgage Options

When it comes to CIS mortgages, there are several options available to suit different financial needs and preferences. The two main types are fixed-rate and variable-rate mortgages:

  • Fixed-Rate Mortgages: These mortgages offer a fixed interest rate for a set period, usually between 2 to 5 years. This means your monthly payments remain consistent, providing stability and making it easier to budget.
  • Variable-Rate Mortgages: With variable-rate mortgages, the interest rate can fluctuate based on market conditions. While this can lead to lower payments when rates are low, it also means your payments could increase if rates rise.

It’s important to seek advice from a qualified mortgage broker who can provide advice as to what product is best suited to your needs and circumstances.

Common Mortgage Challenges for Self Employed CIS Contractors

Traditional mortgage applications can be frustrating for CIS contractors. Here’s why:

  • Contractors are often treated as self-employed, requiring more paperwork
  • Lenders might focus on net profits, limiting your borrowing potential. Business expenses can significantly impact declared profits, so it’s crucial to include these deductions when preparing tax returns to ensure an accurate assessment of net income.

At Connely Roberts Mortgage Services, we help you overcome these challenges by working with lenders who understand the unique nature of CIS income. Our expertise ensures you’re not penalised for working within the scheme.

We have helped a number of CIS workers get the mortgage they deserve. Find out how we can help you too.

What About Income Tax?

For CIS contractors, understanding how income tax impacts your mortgage application is crucial. Under the Construction Industry Scheme, contractors have a portion of their income deducted at source to cover income tax. These CIS deductions are reflected on your wage slips or invoices.

When applying for a CIS mortgage, lenders will typically annualise your gross income based on these slips, rather than focusing on your net profit. This can be advantageous, as it often results in a higher assessed income, increasing your borrowing potential.

It’s essential to keep accurate tax records and ensure your self-assessment tax return is up to date, although these may not be required for the mortgage application, it is important to ensure you are compliant with HMRC regulations.

How to Get Your CIS Contractor Mortgage in 3 Simple Steps

Step 1: Initial Assessment

Speak to one of our experienced consultants, who will take some information in order for them to go away and assess your eligibility.

Step 2: Documentation

Gather your documents, usually you’ll be asked for 3-12 months worth of CIS Slips (depending on lender) along with matching bank statements to ensure the income credit matches the slips.

Step 3: Application & Approval

Once we’ve established we can help and you have an agreement in principle, we will proceed with the full mortgage application which is where the lender will assess your documents and issue a mortgage offer.

Why Choose Us for Your CIS Contractor Mortgage and CIS Mortgage Advice?

We have over a decade of experience working with clients working on a contract basis / self employed. We have a great relationship with our lenders meaning we will discuss your case in detail prior to submission to ensure we have the best chance of approval.

We ensure CIS workers are not penalised when it comes to the rates they’re charged. Although not every lender will assess a CIS worker in this flexible way, you will not be charged a higher rate just because you work on the Construction Industry Scheme.

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