CIS Mortgages
Paid through the Construction Industry Scheme? Not every lender knows how to assess CIS income properly — we compare the whole CIS-friendly lender panel so your mortgage reflects your true gross income.
Speak to a mortgage brokerWhat is a CIS mortgage?
A CIS mortgage is a standard residential or buy-to-let mortgage assessed using an income calculation method built around how CIS workers are actually paid, rather than treating you like a standard PAYE employee or a fully self-employed sole trader. Yes, there is such a thing as a CIS mortgage — it isn't a separate mortgage product on a lender's shelf, but a way of getting a mortgage that fairly reflects your gross CIS income. Getting a CIS mortgage right the first time, with expert CIS mortgage advice from a broker who understands the scheme, avoids the frustration of a declined application with a mainstream lender.
What is the Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is an HMRC scheme under which contractors deduct money from a subcontractor's pay and pass it directly to HMRC as an advance payment towards tax and National Insurance. In finance, CIS status simply means you're paid this way rather than through PAYE or as a standard self-employed sole trader, and CIS mortgages use this distinction as their starting point — your CIS payslips and bank statements show pay after tax has already been deducted, so a lender who doesn't understand CIS may only look at your reduced net figure rather than your true gross income.
How does CIS payment work, and how is your income assessed?
Under CIS, the contractor deducts tax (usually 20% for registered CIS subcontractors, 30% if unregistered) from your pay before you receive it, and reports this to HMRC. When you apply for a CIS mortgage, the right lender will calculate your gross CIS income — borrowing based on your gross CIS earnings rather than penalising you for a net figure that already has tax stripped out. Some lenders base this on your CIS statements over the last three to twelve months, others want a full tax return and SA302, so how a lender treats CIS income can genuinely change your mortgage affordability.
Who is eligible for a CIS mortgage?
Anyone registered under the Construction Industry Scheme and working as a CIS contractor or subcontractor — electricians, plumbers, groundworkers, scaffolders, plasterers, general labourers and similar trades who work in the construction industry — can apply for a CIS mortgage. Most lenders want to see at least three to twelve months of CIS contracting history, though some specialist lenders will still consider you if you've been CIS contracting for less than a year, provided you can evidence your income another way.
What documents do CIS workers need for a mortgage application?
A typical CIS mortgage application asks for a handful of documents. Getting these organised before you apply speeds things up considerably.
CIS payslips
Covering the last three to twelve months of contracting.
Bank statements
Matching your CIS payslips over the same period.
UTR number
Your Unique Taxpayer Reference and CIS registration.
Tax return / SA302
Usually needed if contracting for over a year.
Accountant's reference
Confirming gross CIS income where day rates vary.
Contract evidence
Showing ongoing or upcoming construction work.
How much can CIS workers borrow, and how much deposit do you need?
How much you can borrow depends on which lender you use and how they calculate your CIS income — some will lend based on your gross CIS earnings, others average your last two to three years, and a few will consider your CIS day rate directly. As a broad guide, most CIS mortgage lenders work on four to four-and-a-half times your assessed gross income, similar to a standard mortgage, though the right lender can secure you a noticeably larger mortgage than a generic online mortgage calculator would suggest. Deposit requirements are usually the same as any other mortgage — typically 5% to 15% depending on the lender and your credit profile — though a larger deposit generally opens up a wider choice of mortgage providers and better mortgage rates.
Which lenders accept CIS income, and are CIS mortgage rates higher?
Not every mortgage lender accepts CIS income in the same way, and traditional mortgage lenders on the high street often default to treating CIS workers as if they were standard self-employed applicants, which can undervalue your true earning position. A panel of specialist and mainstream lenders who understand CIS will each assess your gross CIS income differently, so working with a mortgage broker who knows the current CIS-friendly lender panel matters more here than when you simply look for a mortgage on comparison sites. CIS mortgage rates aren't inherently higher than standard mortgage rates — the rate you're offered depends on your deposit, credit score and the lender, not simply on being a CIS worker, provided you find the right mortgage with a lender genuinely comfortable with construction industry scheme mortgages.
Can you get a CIS mortgage with bad credit?
Yes, it's possible to get a CIS mortgage with bad credit, though your options will be more limited and typically come with a higher deposit requirement or a slightly higher rate. Specialist lenders who work with CIS contractors are often more flexible on historic credit issues than mainstream high street lenders, particularly if your CIS income has been stable for the past year or two. A mortgage broker experienced in CIS and adverse credit cases can point you to the lenders most likely to say yes, rather than applying blind and picking up a hard credit search that shows on your file for future mortgage options.
What are the benefits of a CIS mortgage?
The main benefit of a CIS mortgage is that it's assessed using your true gross CIS income rather than a reduced net figure, which can meaningfully improve your mortgage chances and the amount you're offered compared with applying to a lender who doesn't understand the scheme. Because CIS payslips already show a documented, HMRC-recognised income trail, some lenders find CIS applicants easier to verify than a fully self-employed sole trader relying on accounts alone — which is one reason a CIS mortgage broker can often find you a better mortgage deal than expected.
Why work with a specialist CIS mortgage broker?
A specialist CIS mortgage broker works with CIS contractors and subcontractors regularly, so they already know which mortgage lenders will use your gross CIS income, which want a full tax return, and which are simply the wrong fit for construction industry scheme mortgages. Rather than approaching one bank and hoping their standard self-employed criteria happens to work for your situation, a CIS mortgage adviser compares the CIS-friendly panel for you, checks your CIS payslips and bank statements against each lender's exact requirements, and builds your mortgage application around the income calculation that meets your mortgage needs. We can also advise on mortgage and protection together, so your family's cover keeps pace with a bigger mortgage.
Looking for a CIS mortgage?
Getting a CIS mortgage starts with a conversation about your trade, how long you've been CIS contracting, and roughly what you earn gross before deductions. From there we'll help you find a suitable mortgage across the mortgage market, matching your CIS income and deposit against the lenders most likely to offer mortgages on the terms you need — rather than you guessing which of the traditional mortgage lenders might say yes.
CIS Mortgages FAQs
Is there such a thing as a CIS mortgage?
Yes — a CIS mortgage isn't a separate product, but a standard mortgage assessed using an income calculation designed around how Construction Industry Scheme workers are actually paid.
Who is eligible for the CIS scheme?
Contractors and subcontractors working in construction who are registered with HMRC under the Construction Industry Scheme, typically with tax deducted at source by the contractor paying them.
How does CIS payment work?
The contractor deducts tax (usually 20% if registered, 30% if not) from your pay before you receive it and passes this to HMRC, so your CIS payslips show a net figure after tax has already come out.
What does CIS mean in finance?
CIS refers to being paid under HMRC's Construction Industry Scheme rather than through PAYE or as a standard self-employed sole trader — a distinction that matters to mortgage lenders when assessing your income.
Do all mortgage providers lend to CIS workers?
No — many high street lenders don't have clear criteria for CIS income and may only consider your net pay, which is why using a mortgage broker who knows the CIS-friendly lender panel makes a real difference.
How much deposit do I need for a CIS mortgage?
Typically the same as any other mortgage, around 5% to 15% depending on the lender and your credit profile, though a larger deposit usually widens your choice of lenders.
How do I qualify for a CIS mortgage if I've been contracting for less than a year?
Some specialist lenders will consider less than a year of CIS contracting history, provided you can evidence your income another way, though most prefer to see three to twelve months minimum.
What are CIS mortgage lenders looking for?
Mainly consistent CIS payslips and bank statements, your UTR, and evidence of ongoing contract work — the same broad affordability checks as any mortgage, applied to gross CIS income rather than net pay.
Talk to a CIS mortgage adviser
Free 20-minute call with a Montgomery adviser. Tell us your trade, your CIS income and how long you've been contracting, and we'll compare CIS mortgage lenders across the market to find the right mortgage deal.
Call 01933 829 444General information only, not a personal recommendation; illustrative figures only.