CIS Subcontractors: Here’s What You Need to Know Before Applying for a Mortgage
Struggling to Get a Mortgage as a Subcontractor? You’re Not Alone.
If you’re paid under the Construction Industry Scheme (CIS), you might have been told you’ll struggle to get a mortgage. But that’s not always the case.
In fact, many UK lenders will assess your CIS income differently than standard self-employed applicants—often in your favour.
Here’s how it works.
✅ What Is CIS and Who Does It Apply To?
CIS applies to construction subcontractors who are technically self-employed but paid through a contractor who deducts tax at source. You’re given weekly or monthly CIS payslips, and HMRC treats you as self-employed.
Lenders used to be wary of this structure, but many now offer specialist underwriting to help subcontractors get on the property ladder.
🏡 How Lenders Assess CIS Income
There are typically two ways lenders assess CIS income:
1. Payslip-Based Assessment (Most Favourable)
Some lenders will assess your income based on your gross CIS earnings shown on your last 3 to 12 months of payslips—not your net income or filed tax returns.
This can be a huge advantage, especially if you:
- Have only recently started subcontracting
- Minimise income for tax purposes
- Haven’t filed a full year of accounts yet
✅ Best for boosting affordability and borrowing potential
2. Traditional Self-Employed Assessment
Other lenders may treat you like any other self-employed applicant, requiring:
- 2–3 years of tax returns
- SA302s or tax year overviews
- Evidence of average profits
This can limit borrowing, especially if your tax returns show lower income due to expenses.
📝 What Documents Do You Need?
If you’re going the CIS payslip route, you’ll typically need:
- CIS payslips (last 3–12 months)
- Bank statements (to match income received)
- UTR number and confirmation of self-employed status
- Proof of address and ID
Some lenders may also ask for a contractor reference or proof of ongoing work.
💡 Tip: Use a Specialist Broker
Not all lenders accept CIS payslips—and those who do may have specific criteria. That’s why working with a mortgage broker experienced in CIS cases (like Emily’s Mortgage Services Ltd 👋) is key.
We know exactly which lenders to approach, how to package your income, and how to boost your application’s strength—even with a short trading history.
Final Thoughts
If you’re paid under CIS, don’t assume you’re stuck. With the right lender and support, your gross income could open the door to a strong mortgage offer—even if you’ve only been self-employed for a few months.
Want to know how much you could borrow as a CIS subcontractor?
Let Emily’s Mortgage Services Ltd help you make sense of your options—and find the best lender for your unique circumstances.
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