CIS contractor mortgages in Essex
Mortgages for CIS contractors
- CIS subcontractors
- Specialist lenders
If you're paid through the Construction Industry Scheme, tax comes off before the money reaches you, and the profit on your tax return can look a lot smaller than what you actually earn. Some lenders will work from your CIS payslips and statements instead.
CIS mortgages explained
How lenders look at CIS income
Under the Construction Industry Scheme, your contractor takes tax off your pay before you receive it. That is simple enough at tax time, but it can make a mortgage application harder than it needs to be, because the profit figure on your tax return often looks a good deal lower than the money actually coming in.
There are two ways lenders can assess you
Some lenders treat CIS subcontractors as self-employed and work from your tax calculations and accounts, usually across two years. However, other lenders will treat you more like an employed applicant and work from your CIS slips or statements, often over a much shorter period. The two routes can produce very different borrowing figures, which is the main reason it is worth talking to a broker before you apply anywhere.
How long you need to have been contracting
Lenders working from CIS statements will often want to see several months of consistent payments rather than full years of accounts. Others will want the usual two years of self-employed history, though some will consider one. It depends on the lender and on how steady your work has been.
Gaps between contracts
Short gaps between contracts are normal in construction, and lenders who understand CIS expect to see them. Longer gaps are not necessarily a problem either, but they will usually need explaining. We would far rather know about them at the start than have them surface halfway through an application.
If you have other income as well
Plenty of people do some work under CIS and some under PAYE, or run a limited company alongside it. Lenders vary in how much of each they will take into account. Bring us the full picture and we will work out which lenders fit it.
If your credit history is not perfect
Missed payments are not unusual when your income arrives in uneven lumps. Some specialist lenders will still consider you. Acceptance is not guaranteed, but you will get an honest view of where you stand. Read more about bad credit mortgages.
If you are self-employed but not paid under CIS, our self-employed mortgages page covers sole traders and limited company directors.
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Paperwork
What you'll usually need
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01
CIS payslips or statements
How many months a lender wants varies, so bring whatever you have and we'll work with it.
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02
Bank statements
Usually your last few months, so a lender can see the payments arriving.
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03
Tax calculations and tax year overviews
Needed if a lender is assessing you as self-employed rather than from your payslips.
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04
Proof of identity and address
Photo ID, plus a recent bank statement or utility bill.
CIS FAQs
Your CIS mortgage questions
Not sure which route fits you? Call us on 01268 944049.
In most cases, being paid under CIS doesn’t rule you out. The question is usually which lender suits the way you work, and how much they’ll lend based on how they read your income. Every case is different and acceptance isn’t guaranteed.
It depends on the lender. Some work from the gross figure on your CIS statements, before tax is deducted and less any allowable costs. Others use the profit shown on your tax calculation. The difference between the two can be significant, which is why it’s worth checking before you apply.
Lenders that assess CIS income from payslips will often look for several months of regular payments. Lenders treating you as self-employed will usually want two years of history, though some will consider one.
Not always. If a lender is working from your CIS statements and bank statements, you may not need prepared accounts at all. If they’re assessing you as self-employed, accounts help and some lenders require them.
Both can count, but lenders differ on how they combine them. Some will take your CIS income in full alongside an employed salary, others treat it more cautiously. We’ll look at the mix and find the lenders who work with it.
Yes. Your first 30-minute consultation is free and there’s no obligation to go ahead. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances, and we’ll always explain it before you decide to proceed.