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If you are a self-employed contractor working within the CIS scheme, Strive Mortgages can help you access CIS mortgages from specialist mortgage lenders, who are often willing to look upon your income more favourably than other self-employed workers.
Welcome to Strive Mortgages, a specialist mortgage broker for Construction Industry Scheme workers
Strive Mortgages is an experienced mortgage expert offering mortgage advice and broker services to Construction Industry Scheme (CIS) workers.
Self-employed workers often aim for a low net profit in order to reduce the tax they pay. While this is great in terms of tax liability, it can be a disadvantage when looking to get a mortgage. Most lenders assess affordability for a self-employed mortgage on net income, which makes it harder to get higher income multiples and competitive interest rates.
However, if you are a self-employed construction worker in CIS, the great news is that many lenders are willing to assess your income a little differently, using your gross income figures rather than net profit. Simply put, this means that you could potentially borrow more money at more favourable rates.
Strive Mortgages is a mortgage broker, meaning that we’re not here to sell you any particular mortgage products. So you can rely on us to put your needs first and search for the right mortgage for your circumstances from a range of high-street and specialist mortgage providers.
Contact Strive Mortgages today to talk to one of our friendly mortgage advisers and find out how much you can borrow based on your CIS income.
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What is the Construction Industry Scheme (CIS)?
CIS is a tax deduction scheme set up to ensure that contractors deduct money from subcontractor payments. This is used as advance payments to cover the worker’s tax and National Insurance contributions.
Not only does this keep employers on the straight and narrow, but it also gives subcontractors the freedom and flexibility to take on varied work and negotiate their terms on a project-by-project basis.
What is a CIS mortgage?
Certain mortgages cater to the unique income structure of self-employed Construction Industry Scheme workers. “CIS mortgages” are not a product as such, the key difference is the way in which lenders assess the applicant’s income.
Many CIS lenders will offer CIS workers a mortgage based on gross turnover rather than the net profit declared on their self-assessment tax return. A lot of lenders will also allow you to borrow based on your CIS day rate.
This means, that as a CIS worker, you can potentially borrow more money. Some CIS mortgage lenders will consider up to six times your gross annual salary, depending on your circumstances and other credit commitments.
In addition, most CIS mortgage lenders only look at gross pay from the last 12 months. This is great news for CIS workers, as you won’t need to worry about providing evidence of three years of self-employed income and business accounts like you would with traditional mortgage lenders.
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What is the lending criteria for a CIS mortgage?
To be sure that you can meet the monthly payments, CIS lenders assess applicants’ affordability by looking at their income and credit file, as they do for any type of borrower. However, as a CIS worker, specialist mortgage lenders will look more favourably upon your fluctuating earnings.
It’s important to remember that every lender has its own criteria. But here is the typical criteria for CIS mortgages and the documentation you will need to provide.
CIS registration: Applicants must be registered under the Construction Industry Scheme. Many lenders ask for at least 12 months of CIS employment history.
Proof of income: You will be required to provide evidence of your gross and net income, such as bank statements, income tax returns, and CIS payslips. Depending on the lender, you will be required to provide between three and six months of payslips, to allow them to calculate your average monthly income on which to base their mortgage calculation, i.e. how much you can borrow.
Credit report: As part of their affordability assessment, the lender will look at your credit file. A reasonable credit history is essential to most borrowers, although it is possible to get a CIS mortgage with bad credit (see below). Check your credit file here.
Deposit: Standard mortgage criteria applies when it comes to your deposit, with options available for various deposit sizes. If your deposit results lower loan-to-value ratio, not only will it improve your mortgage chances, but lenders may be willing to offer a higher loan amount.
Who we serve
At Strive Mortgages, we welcome enquiries from all sorts of construction industry workers, such as:
- Fixed term contractors
- Professional contractors
- Subcontractors
- Limited Company contractors
- Umbrella company contractors
- Agency contractors
Our mortgage services
We provide expert advice and brokerage services for different types of Construction Industry Scheme mortgages, including:
Mortgages for CIS subcontractors
CIS subcontractors often have fluctuating incomes, which can pose challenges in traditional mortgage assessments. However, Strive Mortgages can connect you with mortgage providers familiar with the Construction Industry Scheme (CIS) to improve your chances of success and make applying for a mortgage more straightforward.
Buy-to-let mortgages
If you are a CIS worker looking to grow your wealth through rental income, it is possible to get a buy-to-let mortgage. Some lenders may not consider you if you don’t have previous buy-to-let experience, and some set a minimum income level, but at Strive Mortgages, we know which lenders to approach based on your circumstances.
Bad Credit CIS Mortgages
Strive Mortgages team are experts in both bad credit and CIS mortgages. If you are a construction industry worker with a history of poor credit, it’s still possible to get a CIS mortgage, even if you have a CCJ. Your chances will be improved if you have been registered for CIS for two years or more, but some lenders will consider less. Our specialist mortgage advisers are here to help.
Remortgage
If you are thinking of switching your mortgage, releasing equity, consolidating debt, or have simply come to the end of your current mortgage deal, get in touch with us. We can work with you to reassess your financial situation and seek out a competitive deal with terms that support your goals.
Home Mover
CIS workers are often on-site or in the office for long hours, so moving home can be stressful. Whether you’re upsizing, downsizing, or relocating your friendly mortgage advisor can take on your mortgage application and help the process go smoothly. That way, you can concentrate on your latest contract without mortgage admin getting in the way.
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Apply for a CIS mortgage with the help of Strive Mortgages, mortgage brokers
Strive Mortgages has an in-depth knowledge of the CIS scheme and CIS mortgages. So if you’re looking to apply for a CIS mortgage, seek advice from our friendly team today.
Not all lenders look upon self-employed contractors favourably, but we have a great number of contacts in the industry who understand the fluctuating nature of CIS income and are willing to base their mortgage calculation on your gross annual income, rather than net income.
For more information on CIS mortgages, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
Frequently asked questions about CIS mortgages
Absolutely. But it’s important to remember that all lenders have their own criteria and assess applicants on a case-by-case basis. You will need to provide CIS payslips for at least three months, sometimes up to six months to qualify for a CIS mortgage.
If you work within IR35, you may come up against hurdles in applying for a mortgage from some lenders. However, other lenders do not consider it a problem at all. Strive Mortgages can help you understand your options to ensure you approach the right lenders.
Absolutely. Strive Mortgages assists individuals working under umbrella companies in securing mortgages. We understand the specifics of income structures in such arrangements and point you in the direction of a suitable lender.
Certain mortgage providers offer mortgages to construction workers operating under the Construction Industry Scheme (CIS). These lenders understand the unique income structures and payment methods associated with CIS workers, including contractors and subcontractors.
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Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
