How do CIS contractor mortgages work?
If you're paid through the Construction Industry Scheme, some lenders will assess you on your gross CIS income from recent payslips or statements, rather than the net profit in your accounts. Because net profit is usually much lower after expenses, this can substantially increase how much you can borrow.
The two ways CIS workers get assessed
- Standard self-employed route: the lender uses net profit from your accounts or SA302s, usually the lower figure, averaged over two years.
- CIS route: the lender works from your gross income on CIS payslips/statements (typically 3 to 12 months' worth), treating you closer to an employed applicant.
The difference can be dramatic. A subcontractor grossing £55,000 might show £38,000 net profit after expenses, at typical income multiples that's tens of thousands of pounds more borrowing through the CIS route.
What you'll typically need
- 3 to 12 months of CIS payslips or statements (varies by lender)
- Matching bank statements showing the income landing
- Usually 12+ months' history working under CIS
- Your UTR and evidence tax is being handled (SA302s may still be requested)
Worth knowing
Only a minority of lenders offer true CIS products and their criteria differ on history required, deposit size and how they handle gaps between contracts. This is a corner of the market where adviser knowledge directly changes the outcome.
"CIS is one of my favourite parts of the job because the right lender genuinely changes lives here. I've seen the same subbie offered £60,000 less by his own bank than he qualified for through a CIS-friendly lender the same week."
Related questions
This page is general information, not personal advice. Whether a mortgage is available and suitable depends on your individual circumstances. Lender criteria and rates change regularly. Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick answers
Do CIS mortgages have higher rates?
Not inherently. Several mainstream and specialist lenders price CIS products competitively - the difference is the income assessment, not a penalty rate.
What if I've got gaps between contracts?
Short gaps are normal in construction and most CIS-friendly lenders accept them. Longer breaks may need explaining - recent consistent income matters most.
Can I use CIS income with one year's history?
Some lenders accept around 12 months under CIS, occasionally less if you previously did the same work employed. Criteria vary - check before applying.
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