Obtaining a mortgage as a contractor in the construction sector may be a genuine pain. Even if you’re in a decent financial state, it might be tough to acquire a good deal with irregular wages, tax deductions, and skeptical lenders!
There is no such thing as a cis mortgage; you’ll be applying for a sole trader/self-employed mortgage, but the construction industry scheme (cis) makes it much easier for subcontractors to navigate the process and get a legitimately good offer, rather than dealing with the faff that many self-employed people face.
In this article, mortgageexpertsonline.co.uk’sexperts will walk you through all you need to know about cis mortgages – how to acquire one, what you need to do to qualify, and how they function.
What exactly is a cis mortgage?
Normally, acquiring a mortgage when self-employed has several serious drawbacks. Most lenders will multiply your yearly salary by (approximately) four times to determine how much you may borrow. This varies depending on the lender, but it’s a decent general guideline.
Because your yearly income is estimated after you declare it for tax purposes, you may get stung after accounting for costs. Rather than depending on self-assessment paperwork supplied to HMRC, the cis considers your gross turnover to be your income. This implies that if you qualify for a cis mortgage, you will most likely be able to borrow far more than you would otherwise (a fairer amount that actually considers your full incomings).
Who is eligible for a cis mortgage?
The cis includes a wide range of construction activities, including site preparation, decorating, and rehabilitation. You are most likely eligible if you work in:
• Site preparation – constructing foundations, etc.
• Building work
• Demolition
• Decorating
• Setting up heating, lighting, water, electricity, or ventilation systems
• Following up on construction (cleaning inside the buildings once a project has finished)
However, several jobs are excluded from the cis:
• Scaffolding rental (without labor)
• Carpet installation
• Material delivery
• Work on non-construction sites (canteen work, etc.)
• Surveying and architecture
• Construction material manufacturing
These regulations are not without exceptions. For example, an architect who also assists with manual construction work would be covered by the cis since they work in both categories.
It might be difficult to assess if you will qualify for a cis mortgage. We suggest contacting professionals who can advise you on whether you are eligible and how much you may borrow.
The mortgage heroes can assist you in submitting an application for a mortgage via the cis.
That was a lot of information to process! Mortgage experts available online provide assistance to construction employees in locating the most favorable mortgage options throughout the whole year. When searching for a mortgage, it’s normal to feel confused, especially if you’re trying to fulfill a certain set of conditions (such as the cis).
Professionals in the mortgage industry are now accessible online to help you in finding the best mortgage for your needs or to give further information. Because we are open around the clock, you may reach us at any moment of the day or night.