Many contractors working under the Construction Industry Scheme (CIS) assume getting a mortgage will be difficult because they are treated as self-employed for tax purposes. However, a number of UK lenders understand how CIS income works and will consider mortgage applications from contractors.
Understanding how lenders assess affordability and contractor income can help you prepare when applying for a mortgage.
How Lenders Assess Affordability for CIS Contractors
When considering a mortgage application, lenders assess whether repayments are affordable based on income and financial commitments.
For CIS contractors, lenders may consider factors such as:
- Length of time working under CIS
- Stability of income
- Deposit available
- Credit history
- Existing financial commitments
As with other mortgage applications, lenders carry out affordability checks and may also apply stress testing to ensure repayments remain manageable if interest rates increase.
How CIS Contractor Income Is Treated
Some lenders are familiar with CIS contractor income and may assess it differently from traditional self-employed income.
Depending on the lender’s criteria, income may be assessed using:
- CIS payslips or contractor payment statements
- Average earnings over a period of time
- Day-rate or weekly contract income
- Tax calculations and supporting accounts
The approach used will vary between lenders and depends on the applicant’s individual circumstances.
Common Questions CIS Contractors Ask
Can CIS contractors get a mortgage?
Yes. Many lenders consider applications from CIS contractors, although lending criteria and documentation requirements may vary.
How long do I need to work under CIS before applying?
Lenders may consider applications from contractors with around 12 months of CIS income history, although this depends on the lender criteria, CIS contract and overall application.
What documents may be required?
Typical documents may include:
- CIS payslips or contractor statements
- Bank statements
- Identification and proof of address
- Tax calculations or SA302 forms (if applicable)
Do CIS contractors need a larger deposit?
No, Deposit requirements are usually similar to other mortgage applications. Some lenders may offer mortgages with deposits starting from around 5–10%, although a larger deposit may increase available options.
Mortgage Advice for CIS Contractors
Because different lenders assess contractor income differently, CIS applicants may benefit from discussing their circumstances with a mortgage adviser who understands contractor lending criteria.
London Finance Hub provides mortgage and protection advice to a range of clients including contractors, company directors and self-employed applicants.
Contractors purchasing their first property may also wish to explore our step-by-step guide to first-time buyer mortgages in London.
Important Information
London Finance Hub is the trading name of Global Finance Hub Ltd, which is directly authorised and regulated by the Financial Conduct Authority.
This article is intended for general information only and does not constitute financial advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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