Mortgage Focus: CIS Contractors
5th May 2022
Estimated reading time: 2 minutes
Are you self-employed in the construction industry?
This could make your mortgage application a whole lot easier!
What is CIS?
The Construction Industry Scheme (CIS) gives subcontractors the ability to present their earnings as pre-tax gross income, rather than final post-tax profit.
This helps self-employed individuals obtain mortgages as their pre-tax gross income will often be much higher than their final post-tax profit. This additional income can help obtain a higher loan amount and even speed up to approval process.
One year’s books?
Needing three years accounts often proves a real challenge for self-employed individuals seeking a mortgage. Whether it’s because of expenses skewing your figures, or simply not having a three-year track record – it can often feel as though the odds are stacked against you.
Rejoice! When you are a CIS contractor, the lender will only be interested in your last 12 months income history.
Being able to demonstrate you have a higher yearly income will also benefit the amount which lenders are comfortable offering you on a mortgage.
Certain lenders will offer preferential rates to individuals who earn over a certain threshold. So, if you can evidence a higher income through the CIS scheme then you could also find yourself with better options.
Let’s get started
You can book an appointment with one of our mortgage experts in under 30 seconds by following the link below.