What is a CIS Mortgage?

Are there any potential drawbacks or risks associated with a CIS mortgage?

The main risk is the same as with all mortgages – if you don’t pay, the house gets taken away from you.

The key drawback is that there are fewer lenders. If you were going to apply for a mortgage as self-employed, using the last two years worth of proof of income, you can go out to the vast majority of lenders.

The CIS route limits your options. If those lenders aren’t offering the cheapest possible deals, you can’t necessarily switch to the lender that has the best rate at the time. It’s just about choosing the most appropriate lender out of the ones that offer CIS mortgages.

How do the interest rates and fees associated with a CIS mortgage compare to those of a traditional mortgage?

The mortgage itself is still the same. Let’s say you’re applying for a mortgage with a lender that will assess things under the CIS scheme. Meanwhile an employed person is applying with the same lender. The fees and interest rates will all be identical – it’s just how the income is assessed that will differ.

Interest rates fluctuate, so it depends what’s available at the time. A couple of well-known lenders offer the CIS scheme, so we don’t have to go to weird and wonderful lenders to get this sorted out.

What documents are required to apply for a CIS mortgage?

This varies by lender, but as with the majority of mortgages, you still need proof of ID, bank statements and proof of deposit. The only thing that really changes is the proof of income.
Depending on the lender you look at, they may want to see your last three months’ CIS payslips, and will average those out to calculate what you earn in a year. Other lenders will want to see 12 months’ CIS payslips and total those up to calculate your income.

How can I find a reputable lender who offers CIS mortgages?

This is where an experienced broker can help. I speak to so many customers that have been to a high street bank or a non-specialist broker, who have only assessed their borrowing based on the last two years’ tax calculations and tax year overviews.

It’s best to find a broker with a lot of experience in dealing with CIS mortgages who knows which lenders to go to. It really can make a big difference in how much you can borrow. Some lenders will average out your yearly income and divide that by 46, assuming you take some time off. But other lenders will use the whole 52 weeks.

Ultimately, it’s a case of speaking to a broker who understands your situation and knows the lenders’ criteria. That will avoid you going to a lender and them telling you it can’t be done.
We have lots of experience and knowledge around the lenders that would be best for you, depending on your personal situation.

Are there any other unique features or requirements of a CIS mortgage that borrowers should be aware of?

With mortgages in unusual situations, like Construction Industry Scheme workers, it’s a case of speaking to an advisor with experience who has dealt with many of these.

If you’re speaking to the right person, it’s actually much easier to get your mortgage agreed under the CIS scheme than as a standard self-employed worker. But it’s only easy if you’re speaking to an expert.

So have a conversation with that broker early on in the process and explain your plans. Often we speak to people who aren’t ready to buy property for another three or six months. But once you’ve got all of your ducks in a row, you’ll be ready to find a property and go.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 27/03/2025