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cis mortgage, CIS Mortgages, Montgomery Financial

CIS Mortgages Explained

with Charles Breen.

Although there isn’t an officially designated ‘CIS mortgage product,’ the Construction Industry Scheme enables eligible sole traders to better represent their income to mortgage lenders, for more information, seek professional CIS mortgage advice.

Over time, this practice has given rise to the term ‘CIS mortgage,’ which refers to a mortgage offered to individuals registered under the CIS.

A common issue faced by sole traders and other self-employed individuals when seeking a mortgage is that their reported income often appears significantly lower than their total revenue.

The CIS mortgage scheme helps bridge this gap. This discrepancy arises because they reduce their taxable income by deducting expenses, thereby showing a lower income to mortgage lenders.
Fortunately, for those in the construction sector, the Construction Industry Scheme (CIS) allows subcontractors to present their earnings as gross income before taxes, rather than showing the final net profit after taxes.

Who is eligible for a CIS mortgage?

The CIS scheme caters to self-employed individuals working within the construction sector. It extends beyond those actively engaged in building to encompass various related fields, such as architecture.


Under the Construction Industry Scheme (CIS), a managing contracting entity, which coordinates subcontracted workers, pre-pays taxes to HMRC. CIS mortgage lenders use this to assess eligibility.

This arrangement allows mortgage lenders to regard your gross earnings as income, instead of relying on the financial figures reported in your self-assessment to HMRC.

Get a CIS mortgage using 3 months of CIS statements as your gross pay.

Some lenders who specifically deal with CIS mortgages will accept an application based on the last 3 months CIS statements, but not all, that is why its so important to use a specialist mortgage broker like ourselves at Montgomery Financial.

Benefits of CIS mortgages for you

Through a CIS mortgage, you have the option to borrow money according to your CIS day-rate before taxes instead of relying on the average of your self-employed income over the past two years as assessed by yourself.

Higher mortgage borrowing ability

Mortgage lenders consider your yearly income as the starting point in deciding the amount of your mortgage. Generally, lenders aim to offer a mortgage up to four times your annual income, though some specialised lenders may consider mortgages up to five times and a select few might even approve amounts up to six times your income.

CIS mortgage with only one year of accounts

The majority of CIS mortgage lenders will consider the total income from the previous twelve months, eliminating the need for the extensive three-year financial records typically required by conventional mortgage lenders for self-employed individuals.

This opens up the possibility of obtaining a mortgage up to two years sooner than usual.

Better deals available to you

Having a higher income level allows you to qualify for more favourable mortgage rates. You may not need the full 4x mortgage amount and can opt for a smaller loan, giving you access to a variety of mortgages with lower interest rates.

Additionally, your affordability and debt-to-income calculations will be stronger and more favourable with assistance from the Construction Industry Scheme.

Speak To an Expert
We want to keep that relationship with you up until your mortgage completes in 20, 25 or maybe 35 years. It’s not just a one-off transaction. It’s a long-term relationship, where we watch the market to get you the most positive products out there and try to save you money.

See how you borrow more than 5 times your income with a CIS mortgage?

Lenders generally offer 4.5 times your annual income for a mortgage but some specialist mortgage lenders may be able to offer up to 6 times your annual income.

Such a large swing in affordability could be the difference in affording your dream home and is why its so important to speak to a specialist early on to find out exactly how much you can borrow.

So speak to a specialist CIS mortgage expert here at Montgomery Financial today. You’re a Construction Industry Scheme (CIS) worker? We can help!

How much deposit do I need?

A CIS mortgage is essentially a traditional mortgage where your entire turnover is taken into consideration instead of just your profits as a sole trader. There is no significant difference between a CIS mortgage and any other standard mortgage available, which is advantageous when saving up for a deposit.
Similar to individuals with a stable employment background, you can access mortgage options with deposits as low as 5%, making it easier to purchase your home.

Apply for a mortgage with our trusted guidance keep in mind that as your buying power increases through CIS, the amount required for a deposit will also increase.

If you are able to provide a higher deposit, you can secure better interest rates for your mortgage. With numerous lenders in the market, demonstrating yourself as a reliable and having a larger deposit with good financial stability will put you in a better position when looking for the best mortgage deal.

Are there bad credit CIS mortgages?

If you have a poor credit history, it may not necessarily prevent you from obtaining a mortgage, but your options may be limited to fewer lenders.

The severity of your bad credit, such as a few missed payments or a minor CCJ, will impact the mortgage choices available to you.
However, if you have significant issues like large CCJs or an IVA, your options will be restricted to only a handful of lenders. A substantial mortgage deposit can strengthen your case by lowering the lender’s risk. For tailored mortgage advice, consult with our experts today.

Expert mortgage advice can significantly improve your application process. To explore potential mortgage solutions, it might be beneficial to speak with one of our CIS mortgage advisors.

We offer plenty of guidance for individuals seeking a mortgage with a less than perfect credit history. Contact us for personalised mortgage advice on 01933 829444. 

Speak to a CIS mortgage expert at Montgomery Financial

If you are a CIS employee seeking a home loan, we are here to assist you.
Montgomery Financial, as a mortgage broker with access to a wide range of lenders, can provide you with thousands of mortgage choices.

What sets us apart is our profound understanding of the Construction Industry Scheme, particularly in terms of how sub-contractors are compensated and which lenders are willing to offer their support. Our knowledgeable advisors are well-versed in the lending requirements and available products, allowing us to secure special rates that are exclusive to brokers

CIS Mortgages FAQs:

Do lenders want me to have been subbing for two years to get a CIS mortgage?

This applies to the majority of lenders. However, when it comes to lenders who are more open to subcontractors, the answer is no. 

If you have been working in the industry for at least 2 years and subcontract to a single company, you can be considered as a regular employee and only need to provide three recent payslips.

I’ve been subbing for less than a year, can I get a CIS mortgage?

Absolutely! If you have at least 2 years of experience in the industry, you are eligible to apply for a CIS mortgage with only three months of CIS slips. 

This is beneficial for individuals who have transitioned from employment or apprenticeship to CIS recently. For custom CIS mortgage advice, contact our advisors. Getting a mortgage based on CIS income has never been easier. 

It is important to find the right lender, as many will require two years of tax returns before considering your application.

What is a CIS Mortgage?

A CIS mortgage is essentially a regular mortgage that takes into account your total turnover through CIS instead of just your profit as a sole trader. 

In other words, certain lenders may look at your total income before any yearly deductions to determine affordability..

How can I get a Mortgage with CIS Statements?

In simple terms, you are able to provide your CIS payslips from the last three months to be eligible. However, in certain situations, the mortgage lender may require up to six months or more of payslips to get a mortgage based on your employment history. 

These payslips will be used to calculate your average net income, which will determine the annual figure the lender uses for their assessment.

Can I get a Mortgage being a Subcontractor?

Absolutely! Being self-employed does not necessarily limit your ability to secure a mortgage. Jones and Young are experts in finding the most suitable construction industry scheme mortgage for you.

Can I get a CIS Mortgage with bad credit?

If you are a CIS worker with poor credit, there are lenders who may still be willing to provide you with a mortgage. Apply for a mortgage with our expert CIS mortgage advice. Contact the mortgage experts today for personalized assistance. 

Montgomery Financial has expert advisers who focus on securing mortgages for CIS workers, regardless of their credit background. If you require more guidance on this matter, please reach out to us and a consultant will reach out to you promptly.

How many payslips are needed for a CIS mortgage?

When your contractor remits payment, they must also provide you with a payment and deduction statement, often known as a payslip. 

This is crucial for your mortgage application. Many lenders will request 3-6 months’ worth of payslips. Our specialist CIS mortgage advice can help you prepare the necessary documents.

I’ve only been registered for 3 months can I get a CIS mortgage?

Most lenders prefer to review 6 months of consecutive payslips to obtain a more accurate estimate of income. 

However, there are a few lenders who are willing to consider applications with just 3 CIS payslips, and we provide CIS mortgage advice to help you through the process.

Are CIS mortgages available to first time buyers?

Certainly, new home buyers who meet the requirements can benefit from the CIS scheme when seeking a mortgage as a subcontractor. 

The terms of the loan will be determined by how long you have been registered as a subcontractor, with a minimum deposit of 5% needed.

How does it work if you’re paid a day-rate?

When you have a CIS mortgage, you can borrow against your CIS day-rate pre-tax income, rather than relying on an average of your self-employment earnings from the past two years through self-assessment.
It is crucial that you can show adequate evidence from the payment and deduction statements you have received. For assistance, seek mortgage advice from our qualified team.

How complicated are mortgages for contractors and subcontractors?

Mortgages for contractors and subcontractors can indeed be complicated. If you’re registered with the Construction Industry and registered with CIS, navigating the UK regulatory regime and the Construction Industry Scheme can be tricky. 

However, Montgomery Financial offers specialized CIS mortgage advisers who provide For financial advice on how to get a mortgage based on your income, we provide detailed guidance. tailored to your needs.

Contacting Montgomery Financial  could streamline your CIS mortgage application. One of our mortgage advisers We will assess how much you can get a mortgage based on your income and credit score. 

Would be able to borrow and which Many mortgage lenders treat CIS income differently, offering more favourable terms through the CIS mortgage scheme. you favourably based on your status.

 This could be particularly useful if you have Less than 12 months of employment history can be challenging, but CIS mortgage lenders use alternative criteria. of records.

For a friendly mortgage experience, let our team at Montgomery Financial handle your case. We understand the intricacies of mortgages for construction workers and work to provide a mortgage that suits your unique situation via the Construction Industry Scheme. Call us today on 01933829444

How is a CIS mortgage different?

When it comes to self-employed mortgages, especially for those working in the construction industry, Montgomery Financial stands out as a top mortgage provider. 

If you’re a construction worker or subcontractor, a contractor mortgage is designed to suit your needs. Instead of struggling to find a mortgage using traditional methods, you can get a larger mortgage based on your gross CIS income. 

Mortgage advisers at Montgomery Financial understand that it’s possible to borrow based on your CIS day-rate. This means you may be able to borrow more than you would with a regular self-employed mortgage. 

Seeking advice for subcontractors is crucial for finding the best CIS mortgage. In conclusion, if you’re part of the Construction Industry Scheme, Montgomery Financial can help you find the right mortgage by considering your gross CIS income based on your CIS day-rate.

Speak To an Expert
We want to keep that relationship with you up until your mortgage completes in 20, 25 or maybe 35 years. It’s not just a one-off transaction. It’s a long-term relationship, where we watch the market to get you the most positive products out there and try to save you money.

Why Montgomery Financial

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