Construction Industry Scheme mortgages

How do I qualify for a CIS mortgage?

Typically, to qualify for a CIS mortgage, you need the following:

• 6 months CIS payslips
• Tax on the scheme must be deducted at 20%
• Minimum of 5% deposit
• Be between the ages of 18-75

Provided that a subcontractor is registered for the CIS, lenders will generally accept payslips as proof of income.

If a subcontractor is not registered, they may have to provide at least one year’s accounts or an SA302. You will need to expect the declared figure to be used in the mortgage calculation.

What interest rates should I expect on a CIS mortgage?

CIS mortgage rates don’t typically differ from those of a standard residential mortgage. Instead, other influencing factors could determine the rates you are offered. These factors include:

• The loan-to-value (LTV) ratio. Typically, the less you need to borrow, the lower LTV and the lower the interest rate.
• Your credit history. The better your credit history, the better chance you have of being offered a competitive rate.
• Affordability. The more financially comfortable a lender sees you can influence the rates offered.

The more you can satisfy each factor positively, the increased chances you will have of being offered lower rates.