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Saturday 11 January 2025
Saturday 11 January 2025
Saturday 11 January 2025
Saturday 11 January 2025
The Construction Industry Scheme (CIS) creates a unique situation for mortgage applications. While CIS workers are technically self-employed for tax purposes—meaning they must file a tax return at the end of the year—they are paid net of tax and receive CIS payslips or remittance statements.
This distinction allows some lenders to treat CIS workers as employed, making mortgage approval easier compared to traditional self-employed applicants.
Key Considerations for CIS Workers Applying for Mortgages
CIS Income Classification
Some lenders require 12 months of CIS income history, while others accept a shorter period, making mortgage approval more accessible.
If accepted, lenders will use your CIS payslips as proof of income, without needing full self-employed documentation.
Some lenders still classify CIS workers as self-employed, meaning you would need to provide SA302 tax calculations and overviews, similar to sole traders or company directors.
Benefits of Using CIS Payslips
✔️ Higher Assessable Income – CIS payslips show gross income before business expenses, allowing for a higher affordability assessment compared to self-employed calculations.
✔️ No Need for Tax Calculations & Overviews – Unlike traditional self-employed applicants, CIS workers using payslips don’t always need tax documents, simplifying the process.
✔️ Access to Employed Criteria – Some lenders assess CIS workers under their employed mortgage criteria, granting access to better interest rates and mortgage products.
✔️ Timing Advantage – If you’ve been working under CIS for 12 months but haven’t yet filed a tax return, some lenders still allow mortgage applications based on your CIS payslips instead of tax records.
Documentation Requirements
Lenders will require different documents depending on whether they assess CIS workers as employed or self-employed:
If treated as employed (CIS payslips approach):
📄 Last 3-6 months’ CIS payslips/remittance statements (some lenders may accept less).
📄 Corresponding bank statements showing income deposits.
If treated as self-employed:
📄 Tax Calculation (SA302) and Tax Overview.
📄 Possibly trading accounts, if requested.
Lending Flexibility for CIS Workers
One of the biggest advantages for CIS workers is the flexibility in proving income:
Some lenders accept less than 12 months of CIS income, making it easier to secure a mortgage.
Depending on the lender, CIS workers may qualify as either employed or self-employed, depending on the best-fit mortgage criteria.
This dual classification can lead to higher affordability assessments and access to mortgage products typically reserved for employed applicants.
Final Thoughts
CIS workers have multiple mortgage options, and the ability to use CIS payslips as proof of income can:
✅ Simplify the mortgage application process.
✅ Increase borrowing potential.
✅ Provide access to a wider range of lenders and products.
Not all lenders require 12 months of CIS history, so it’s important to explore available options. Additionally, if you haven’t yet filed a tax return, you may still be eligible for a mortgage using CIS payslips.
Understanding how different lenders assess CIS income is key to securing the best mortgage deal. We can help explore these options and find the best solution for your needs. Contact us today for expert advice.
The Construction Industry Scheme (CIS) creates a unique situation for mortgage applications. While CIS workers are technically self-employed for tax purposes—meaning they must file a tax return at the end of the year—they are paid net of tax and receive CIS payslips or remittance statements.
This distinction allows some lenders to treat CIS workers as employed, making mortgage approval easier compared to traditional self-employed applicants.
Key Considerations for CIS Workers Applying for Mortgages
CIS Income Classification
Some lenders require 12 months of CIS income history, while others accept a shorter period, making mortgage approval more accessible.
If accepted, lenders will use your CIS payslips as proof of income, without needing full self-employed documentation.
Some lenders still classify CIS workers as self-employed, meaning you would need to provide SA302 tax calculations and overviews, similar to sole traders or company directors.
Benefits of Using CIS Payslips
✔️ Higher Assessable Income – CIS payslips show gross income before business expenses, allowing for a higher affordability assessment compared to self-employed calculations.
✔️ No Need for Tax Calculations & Overviews – Unlike traditional self-employed applicants, CIS workers using payslips don’t always need tax documents, simplifying the process.
✔️ Access to Employed Criteria – Some lenders assess CIS workers under their employed mortgage criteria, granting access to better interest rates and mortgage products.
✔️ Timing Advantage – If you’ve been working under CIS for 12 months but haven’t yet filed a tax return, some lenders still allow mortgage applications based on your CIS payslips instead of tax records.
Documentation Requirements
Lenders will require different documents depending on whether they assess CIS workers as employed or self-employed:
If treated as employed (CIS payslips approach):
📄 Last 3-6 months’ CIS payslips/remittance statements (some lenders may accept less).
📄 Corresponding bank statements showing income deposits.
If treated as self-employed:
📄 Tax Calculation (SA302) and Tax Overview.
📄 Possibly trading accounts, if requested.
Lending Flexibility for CIS Workers
One of the biggest advantages for CIS workers is the flexibility in proving income:
Some lenders accept less than 12 months of CIS income, making it easier to secure a mortgage.
Depending on the lender, CIS workers may qualify as either employed or self-employed, depending on the best-fit mortgage criteria.
This dual classification can lead to higher affordability assessments and access to mortgage products typically reserved for employed applicants.
Final Thoughts
CIS workers have multiple mortgage options, and the ability to use CIS payslips as proof of income can:
✅ Simplify the mortgage application process.
✅ Increase borrowing potential.
✅ Provide access to a wider range of lenders and products.
Not all lenders require 12 months of CIS history, so it’s important to explore available options. Additionally, if you haven’t yet filed a tax return, you may still be eligible for a mortgage using CIS payslips.
Understanding how different lenders assess CIS income is key to securing the best mortgage deal. We can help explore these options and find the best solution for your needs. Contact us today for expert advice.
