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CIS Mortgages – Helping Subcontractors Buy a Home
If you’re a subcontractor in the construction industry, you might worry that your variable income will make it difficult to get a mortgage. Fortunately, there are mortgage options specifically designed for those registered under the Construction Industry Scheme (CIS), giving you a better chance at homeownership
What is a CIS Mortgage?
A CIS mortgage is tailored for subcontractors in the construction industry who are registered under the Construction Industry Scheme. While it’s often believed that self-employed individuals face more hurdles when applying for a mortgage, the landscape is changing—especially for CIS workers.
CIS mortgages allow lenders to assess your affordability based on your gross income—that is, your earnings before tax and national insurance are deducted. This approach can increase the amount you’re eligible to borrow and improve the mortgage terms available to you. These mortgages help overcome the limitations that often come with fluctuating income by focusing on the strength and consistency of your contract work.
Who is Eligible for a CIS Mortgage?
To qualify for a CIS mortgage, you typically need to:
Be registered under the Construction Industry Scheme (CIS)
Have at least one year of self-employment history
Have been working in the UK for more than three years
Provide a deposit of at least 5% of the property’s value
These criteria can vary slightly between lenders, but this is the general benchmark. The stronger your income history and deposit, the better your chances of accessing competitive terms.
How Do You Apply for a CIS Mortgage?
The first step is identifying lenders who offer mortgages suitable for CIS subcontractors. Not all lenders promote these mortgage types publicly, and the eligibility criteria can vary, which is why seeking expert advice is often recommended.
When applying, you’ll be asked to provide proof of income, but how this is assessed depends on the lender. Some lenders will classify you as self-employed and ask for one to three years of tax returns or accounts, while others may treat you more like a contractor and request recent CIS payslips and details of your ongoing contracts. Some lenders may also want to see evidence of long-term work or renewals to gauge stability.
Pros and Cons of a CIS Mortgage
Advantages:
Higher borrowing potential: Gross income assessments often mean you’re eligible for larger loans.
Flexibility with credit history: Some lenders are open to applicants with imperfect credit, provided other financial factors are strong.
Disadvantages:
Fewer available lenders: Not all lenders offer CIS mortgages, so your options may be limited.
Potential for higher interest rates: You might face slightly higher rates depending on your financial history or how your income is assessed.
As with any mortgage, it’s essential to compare your options carefully and ensure you fully understand the terms. Always evaluate monthly repayments alongside any upfront fees or charges.
Can You Get a CIS Mortgage with Bad Credit?
Yes, it’s possible—though your options may be limited. Lenders will review your credit history, but having some adverse credit doesn’t always mean rejection. If your credit issues are from the past and you’ve since maintained good financial behaviour, some lenders may still consider you for a CIS mortgage—especially if your current income is strong and consistent.
However, severe issues such as recent CCJs, defaults, or bankruptcy may significantly reduce your chances or affect the rates you’re offered. A larger deposit can help offset some of this risk.
Why Work With a Mortgage Broker?
Navigating CIS mortgages on your own can be challenging—especially since many of the most suitable lenders only accept applications through specialist brokers. A mortgage broker experienced in CIS cases can:
Identify which lenders are most suitable for your situation
Help present your income and employment history clearly
Ensure all documents meet the lender’s expectations
Increase your chances of securing a better mortgage deal
They take the guesswork out of the process, saving you time and giving you peace of mind that your case is being handled professionally.