Not all lenders offer CIS scheme mortgages, and those that do may have different lending criteria. Typically, however, CIS scheme mortgages allow subcontractors to prove income using the gross amount shown on the payslips they receive from contractors, rather than having to provide business accounts or a SA302, which shows the year-end tax calculation from a Self Assessment tax return. This can be advantageous for applicants with less than two years’ worth of accounts to show.
Rather than a “one-size-fits-all” assessment criteria, CIS lenders generally assess applicants on a case-by-case basis. Having said that, there are broad criteria that will need to be met. Generally, to qualify for a CIS scheme mortgage you can expect to be asked to provide your CIS payslips for at least the last three months, although up to six may be required or more in some circumstances. They will be used to calculate an average monthly income, from which an annual income figure will be worked out. You may generally also need to provide bank account statements for the same period of time.