Do you qualify for a CIS mortgage?

CIS Mortgage - Do you qualify?

You are a CIS subcontractor if:

  • You work in the construction industry on a self-employed basis
  • You have 20% tax deducted from you pay at source, this means the company pays the tax before paying you

How most lenders treat you

This means that most mortgage lenders will treat you as self-employed. Therefore, they will treat you like any other self-employed person and typically base their lending decision on the average of your last two years tax year overviews and tax calculations.

This could be bad for you because you may be earning a lot more money now than you were earning 2 years ago.

You can get a CIS mortgage and be treated like a regular employee with some banks if…

  • You have worked in the construction industry for 2 years or more
  • You have been on CIS for the last 3 months
  • You only sub to one company

Or

  • You’ve been subbing for 12 months and have 6 months or more remaining on your contract

In this case you can have your income assessed like an employee on a salary earning by annualising your last 3 months pay.

The best of both worlds

This means that if you can get a better mortgage deal by being assessed as a ‘normal’ self-employed person, you can apply for a regular mortgage.

But if you can only borrow what you need to borrow by assessing your income as what it is today, not two years ago, I can apply for a CIS mortgage for you.

You will be treated like other self employed people if…

  • You pay your own tax independently
    • It’s not deducted at source
  • You employ yourself via a limited company
  • You sub to more than one company
 
If this is the case you can still apply for a mortgage with just one years accounts. You do not have to have two years or more to apply for a mortgage. 
Do you qualify for a CIS mortgage?

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