CIS income is often misunderstood by mainstream lenders. We work with lenders who assess your earnings correctly, helping you maximise your borrowing potential.
We help ensure your CIS income is assessed before deductions, giving lenders a clearer picture of your true earning capacity.
We match your application with lenders who understand CIS payment structures and contractor income.
Your CIS payment history is presented using the documentation and assessment method lenders expect.
Using the right lender and income assessment can significantly improve the mortgage available to you.
Registered CIS subcontractors have a 20% deduction applied. Unregistered subcontractors face a 30% deduction. For mortgage purposes, both are grossed up by the corresponding lender to the pre-deduction gross. The difference in net income between a 20% and 30% deduction rate does not reflect a difference in gross earning capacity — it reflects a difference in registration status.
If you are currently unregistered and therefore subject to 30% deduction, registering with HMRC as a CIS subcontractor reduces the deduction rate to 20%, which improves your net income and makes your gross-up calculation more straightforward. We advise on the benefits of registration as part of our initial assessment.
Having the right documents ready helps make the application process smoother and allows lenders to assess your income accurately.
Most CIS-friendly lenders require twelve months of CIS deduction statements to demonstrate consistent income. Some will consider nine months of history for applicants with a strong financial profile. Unlike some other contractor income types, the two-year SA302 requirement does not apply where the lender is using CIS gross-up assessment rather than self-assessment income.
For CIS contractors who have been in the scheme for less than twelve months, the options are more limited but not non-existent. We identify the lenders most flexible about CIS history length and advise on whether waiting to accumulate a full twelve months of statements produces materially better mortgage options.
CIS contractors who buy new-build properties, whether as a primary residence or as a BTL investment, follow the same application process as any other CIS mortgage. The extended offer validity that new build lenders provide is particularly useful for CIS applicants who may be planning their purchase several months in advance.
We advise on new build purchases for CIS contractors using the same lender selection approach as for existing property purchases.
The most common reason is that the lender has assessed your income on the net CIS figure rather than grossing it up to the correct pre-deduction amount. This is a lender selection problem — not all lenders understand CIS gross-up. With the right lender, your mortgage offer will reflect your actual gross earnings.
No — VAT registration is not a requirement for CIS mortgage applications. The primary evidence lenders need is your CIS deduction statements showing gross and net income, not your VAT registration status.