CIS Mortgages

Article created by Christian Duncan, Director – Mortgage and Protection Adviser
Last updated 5th March 2025

Finding the right mortgage as a self employed CIS contractor:

If you’re a construction industry subby then you might find the mortgage landscape a difficult one to navigate.  Like you, I’ve spent years perfecting my trade and as a time served mortgage broker I’ve helped hundreds of clients navigate this landscape which has resulted in positive outcomes.

As a CIS worker you are in a very fortunate position compared to most.  Certain lenders look at your pay structure favourably over your typical self-employed client who would usually be asked to provide 2 years worth of self-employed figures, which more often than not will result in a lower level of lending.

For a construction industry subcontractor with the right track record you can be asked for as little as 3 months payslips.

The benefits of a CIS mortgage:

The biggest benefit has got to be how some lenders calculate your income.  Often we are able to use the gross pay from your CIS payslips before tax and expenses are factored in. 

Although there’s no legal requirement to submit a tax return as a CIS contractor because the tax is taken at source, most contractors voluntarily do so to benefit from the tax savings. 

If we look at your typical tradesman they are responsible for covering the costs of things such as tools, vans, fuel, professional registrations such as gas safe, invoicing software, the list goes on.  It makes financial sense to offset these costs against your tax and apply for a tax rebate at the end of each tax year.  By doing this you are likely to reduce your tax liability and get some of your well earned cash back. Let’s face it who wants to pay tax if they don’t need to?

By using your gross pay we are able to secure a significantly higher level of lending. 

How much can I lend with a CIS mortgage?

It’s difficult to give you a clear indication of how much you can lend at this stage but by using your gross pay in our affordability calculations, lenders are likely to offer between 4.5 and 6.0

times your income; this can of course be combined income on an application with up to 4 applicants.

What does a CIS mortgage cost?

There’s a common misconception that mortgages for CIS contractors will cost more money and this isn’t correct!  There are high street lenders that hold some of the most competitive mortgage products on the market who will consider using CIS income.

CIS mortgages and bad credit

CIS mortgages for contractors with bad credit are possible.  In the same way somebody who is employed or self-employed can secure a mortgage with bad credit.   It will of course depend on the severity of the bad credit. 

IVA’s
DMP’s (debt management plans)
CCJs
Defaults
Late payments
Missed payment
Bankruptcy

Bad credit doesn’t need to stop you securing a mortgage but will impact which lenders are likely to accept your circumstances. 

A case I have successfully placed is a CIS worker with 5 CCJs, 1 unsatisfied default and 2 missed mortgage payments.  The client had a credit score of only 368 which is why I placed him with a lender that credit searches instead of credit scores. 

For full transparency the rate secured wasn’t as attractive as somebody who doesn’t have any bad credit but this clients aims and objectives were met.  With careful planning and by understanding your future plans we can make a recommendation based on your current and future plans. 

Credit scoring is the modern method of underwriting where a computer based system makes a lending decision based on your credit score.  Credit searching is a little more long winded but a very effective way of underwriting, often giving your mortgage advisor the opportunity to discuss your case with an underwriter.  This can be beneficial to a lot of non-standard cases.

CIS mortgages and shared ownership properties

In my experience most CIS contractors look at properties that they can refurbish and add value to with their chosen trade which is why shared ownership mortgages for CIS workers aren’t very common.  Whilst they don’t land on my desk frequently, they are something that I have helped clients achieve.

Shared ownership mortgages can be a great way of getting onto the property ladder when you’re on a relatively low income.  There are opportunities here to secure a 100% mortgage with no deposit at all in certain circumstances so it can be a great opportunity to become a home owner without the need to put any of your own money up front. 

CIS buy to let mortgages

CIS contractors frequently look to secure buy to let mortgages as it’s a fantastic way of investing their hard earned ‘cash’ and building a retirement income.  A lot of buy to let lenders don’t actually have a minimum income amount as they are happy to use the rental income to make a lending decision.

Having a basic income will open you up to more lenders and ultimately help us find you a more competitive deal.  CIS workers tick this box which opens you up to some of the market’s best available buy to let mortgage products. 

CIS mortgage advice fee

As a mortgage broker we charge a fee, typically this is £499.  The advice and quality of service we offer to our clients is unbeaten. 

I’m that confident in my ability, I offer a money back guarantee to all my clients. If we are unable to secure your mortgage I will personally refund your broker fee within 24 hours.

Don’t take my word for it. Look at our google reviews to see what our clients say!