The Construction Industry Scheme (CIS) allows registered contractors to deduct money from the payments made to subcontractors, with the deductions counting as advance payments towards tax and National Insurance. The scheme also helps subcontractors spread financial liabilities over the financial year. However, it can also make it more challenging to secure a competitive mortgage rate. That’s why it’s so important to speak to an experienced CIS mortgage broker like Create Finance.
CIS subcontractors often find it difficult to borrow sufficiently on a mortgage, mainly because mainstream banks base their decision on profit after expenses – treating registered CIS contractors like any other self-employed individual. Some lenders require you to provide two or three years’ worth of accounts to be considered for a mortgage or remortgage. However there are plenty of respectable specialist lenders willing to calculate your affordability based on your CIS day rate before tax.
All lenders are unique with an ever-evolving criteria, but generally, specialist CIS lenders accept regular payslips as proof of income. Having three years’ worth of accounts can be beneficial, but it’s not always necessary. We know many lenders willing to consider borrowers with 12 months worth of accounts, or even 3 months CIS payslips whilst they have a more sympathetic outlook on borrowers with gaps in employment due to the nature of the work, such as being between contracts or taking a well-deserved holiday. The best way to determine whether a CIS mortgage is right for you is to get in touch with our team. As soon as we learn more about your contracted work, income and mortgage goals, we can begin to narrow down the most cooperative lenders with the best deals for your needs.
If you are registered with the scheme and have struggled to find the right mortgage and need support navigating the complexities, we’re here for you. Even if you have bad credit or a small deposit, we may be able to get you rates from a variety of CIS lenders, allowing you to speed up the process of buying a new home or remortgaging. We’ve helped many construction contractors, heating engineers, electricians, landscapers, roofers, and plumbers unlock the best deals. We search the mortgage market before helping you make an informed decision every step of the way, enhancing your chances of acquiring the CIS mortgage you need.
Create Finance Limited. Company Reg: 09582938. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, DE1 1EE.
Create Finance Limited is registered with the Data Protection Act registration No. ZA129368 and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 708799 an Appointed Representative of TMG Direct Limited which is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 786245 and registered with the Data Protection Act Registration No: ZA178200.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The overall cost for comparison is 4.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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