If you work under the Construction Industry Scheme (CIS), getting a mortgage is different from a standard employed borrower. Specialist lenders understand CIS income and will lend against it — but you need to present your case correctly.
Can CIS contractors get a mortgage?
Yes. CIS contractors can get a mortgage. Many high-street lenders decline CIS applicants because they prefer standard employed income, but specialist lenders and building societies actively lend to CIS subcontractors. The key is finding a broker who understands the CIS scheme and knows which lenders will accept your income.
What lenders look for in a CIS contractor mortgage application
Lenders typically want to see:
- 12 months of CIS history — some lenders accept 12 months of gross CIS income rather than requiring 2-3 years
- Tax returns and SA302s — HMRC tax calculations showing your declared CIS income
- Contract evidence — current contracts showing ongoing work
- Bank statements — to verify income and outgoings
- Proof of CIS deductions — your CIS payment statements showing tax deducted at source
CIS Contractor Mortgages: A Complete Guide. Navigating the world of mortgages as a CIS contractor can often feel overwhelming. With unique income structures and specific lending requirements, it’s essential to understand how to approach mortgage applications effectively. This guide serves as a comprehensive resource, ensuring that contractors are well-informed about their options and the process involved.
How much can a CIS contractor borrow?
Most lenders will lend between 4x and 5x your annualised CIS income. For example, if your gross CIS income is £50,000 per year, you could potentially borrow between £200,000 and £250,000. Some specialist lenders use a higher multiple for strong applications with good deposit and credit history.
CIS contractor mortgage rates
Rates for CIS contractor mortgages are competitive with standard mortgage rates. Specialist lenders typically offer rates from 4-6% depending on your deposit size, credit profile, and the lender’s risk appetite. A larger deposit (25%+) generally secures better rates.
Documents you will need
- SA302 tax calculations for the last 1-2 years
- Tax year overview from HMRC
- 6-12 months of bank statements
- CIS payment statements
- Current contracts
- Proof of deposit
- ID (passport or driving licence)
Common challenges and how to overcome them
Inconsistent income: Lenders understand that CIS work can be seasonal. They will look at your average income over 12 months rather than individual months.
Gaps between contracts: A broker can help present gaps in context and find lenders who are flexible on continuity.
Only one year of accounts: Some specialist lenders accept applications with just 12 months of CIS trading history.
Frequently asked questions
Can I get a CIS contractor mortgage with a limited company? Yes. If you operate through a limited company, lenders will assess your salary and dividends or use a retained profit calculation.
Do I need a large deposit? Most lenders require at least 10% deposit. A 15-25% deposit will give you access to better rates and more lenders.
Can I include my partner’s income? Yes. Joint applications with a partner’s income can increase your borrowing power.
Will using an umbrella company affect my application? It depends on the lender. Some treat umbrella company income as employed income, which can simplify the application.
How long does the mortgage process take for CIS contractors? Typically 4-8 weeks from application to completion, similar to standard mortgages.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Think carefully before taking on debts secured against your home. The information in this guide is for educational purposes and does not constitute financial advice. Your specific circumstances will affect your mortgage options.