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Construction Industry Scheme mortgages

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 23rd August 2019 *


Struggling to borrow the mortgage you need because you don’t have 3 years accounts? Written off expenses and declare a low net profit? With Construction Industry Scheme (CIS) mortgages you can use the gross income on your payslips rather than your business accounts or self-assessment.

To qualify for CIS scheme mortgages you need the following:

  • 6 months CIS payslips
  • Tax on the scheme must be deducted at 20%
  • Minimum of 5% deposit

Self-employed mortgages can often be hard to obtain, mostly because many sole traders will write off expenses against the income allowing them to pay less tax. Because lenders usually calculate affordability based on net profit figures, reducing the net profit on accounts can cause problems when it’s time to evidence what you can afford to borrow.

The good news is that tradesman and anyone paid through CIS where tax is deducted at 20%, can use the gross income figures on their CIS payslips so long as they have had 6 months history. (Note: If tax is deducted at 30% then lenders often also require a review of business accounts and will take declared figures).

How much can you borrow on a CIS mortgage?

With the payslip example below, the figures the CIS mortgage lenders use will be based on the ‘value of measured work’ figure, in this example it’s the 4275 amount. Lenders will take the total sum of the last 12 months payslips to establish the total of your personal income.

Typical lending figures are then approx. 4x this amount, but can be less if you have other monthly commitments such as other mortgages, loans and credit cards. Assuming this borrower earned 4275 every month, the total income would be 4275 x 12 = £51,300. With no other outgoings this person would be able to borrow approx. £205,200.

CIS payslip mortgage

CIS mortgages with bad credit

If you have a history of bad credit there's still lenders that will consider your application. In fact, so long as you have had no defaults or CCJ's in the last 24 months, you can still be accepted at top rates.

Still have questions?

If you’re having trouble finding a mortgage lender that accepts 1 year accounts – let us know! The experts and can help you today, just get in touch either with a quick question or a full enquiry. If you require immediate assistance please give us a call

Updated: 23rd August 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about how we help the self employed get mortgages.

Self Employed Mortgages