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CIS Mortgages: How Contractors and Subcontractors Can Secure a Mortgage in the UK
Getting a mortgage when you’re self-employed, particularly under the Construction Industry Scheme (CIS), can feel daunting — but it doesn’t have to be. A CIS mortgage offers a realistic route to homeownership for contractors and subcontractors who are paid via CIS. Here’s a straightforward guide to understanding what a CIS mortgage is, how it works, and how you can improve your chances of success.
What is a CIS mortgage?
A “CIS mortgage” isn’t a separate mortgage product on its own. Rather, it describes a mortgage application from someone whose income comes via CIS. Instead of relying on net profits or self-assessment accounts, some lenders use CIS payslips and bank statements, often focusing on gross income, to assess affordability. This can lead to a higher borrowing potential, as gross income tends to be higher than net income after expenses.
For many subcontractors, this difference can be significant. Where a standard self-employed application might yield limited borrowing, a CIS-based approach can open doors to higher loan amounts and more favourable mortgage deals.
How do lenders treat CIS income?
Traditional self-employed mortgages often require two full years of accounts or SA302 tax documents. But for CIS contractors, many lenders adopt a more flexible approach: some accept just 3–6 months of CIS payslips, sometimes complemented by bank statements. Others may look for a longer track record, but overall the process tends to be smoother than standard self-employed mortgages.
Importantly: when lenders use gross CIS income instead of net profit, your affordability — and thus borrowing power — improves. As a result, many CIS applicants can access loan-to-value ratios and mortgage products similar to those available to employed borrowers.
Who qualifies for a CIS mortgage?
If you are working under CIS and receiving payslips or remittance statements, you may qualify — provided you can show consistent income and meet other standard mortgage criteria (deposit, credit history, affordability, etc.).
Specialist lenders familiar with CIS applicants are crucial, because not all mainstream lenders accept CIS income as valid mortgage evidence. Knowing which lenders are “CIS-friendly” significantly increases your chances of approval.
Even contractors with shorter CIS history may have a chance if payslips and bank statements show consistent income. This flexibility is what makes CIS mortgages valuable for many in the trades.
What you need to prepare if you apply
CIS payslips or remittance statements (ideally last 3–12 months) + matching bank statements showing income.
A deposit (many lenders accept 5–10% depending on credit profile and income).
Standard documentation: ID, proof of address, credit history, and affordability details.
Awareness that lenders treat CIS applicants differently, a specialist mortgage broker can improve your chances significantly.
Why CIS mortgage makes sense for contractors
For many self-employed contractors and subcontractors, traditional mortgage rules based on net profit make borrowing difficult, especially if expenses are high. Because a CIS mortgage considers gross income, it can boost borrowing capacity significantly and offer access to better deals. That can be a game-changer for tradespeople looking to buy a home in the UK.
But the key is choosing a lender who understands CIS. Using a broker familiar with CIS mortgages can mean the difference between rejection and approval, saving time, reducing stress, and getting you closer to owning your home.
How PBSBrokers Can Help
At PBSBrokers, we understand the complexities of CIS incomes and housing finance. We help CIS contractors navigate the lender landscape, identify suitable mortgage options, and assemble the right paperwork to maximise approval chances. Whether you’ve been on CIS for months or years, we guide you step by step toward homeownership.
Disclaimer
Information provided is for general guidance only. Mortgage approval depends on individual circumstances, lender criteria, and documentation. Always speak to a qualified mortgage adviser for up-to-date and personal advice.
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