For CIS contractors, securing a CIS contractor mortgage can be far more achievable than many think. The key advantage of applying for a mortgage as a CIS subcontractor is that lenders can assess your gross income rather than your post-expense, taxable income. At Quanstrom Financial, we specialise in helping CIS contractors secure the best mortgage deals by working with CIS-friendly lenders who fully understand how your income is structured.
How Lenders Assess CIS Contractor Income
Unlike self-employed mortgage applicants who typically have their income assessed based on net profit after expenses, CIS contractors can use their gross earnings from their CIS payslips or CIS vouchers. Different lenders have varying criteria when assessing this income:
- 3-Month Average of CIS Vouchers: Some lenders will calculate your CIS mortgage affordability based on the last 3 months of CIS vouchers. This can be beneficial for CIS contractors during their peak season, as it reflects their highest earning potential.
- 6-Month Average of CIS Vouchers: Some CIS mortgage lenders prefer a more balanced approach and take an average of the last 6 months of CIS earnings to determine affordability.
- 12-Month Average of CIS Vouchers: Ideal for seasonal CIS tradesmen, such as bricklayers and roofers, who earn less in winter months due to adverse weather. This method ensures that lower seasonal earnings do not disproportionately impact borrowing potential.
By working with CIS-friendly mortgage lenders, contractors can often borrow significantly more compared to lenders who assess income using traditional self-employed criteria.
Key Considerations for CIS Contractors Applying for a Mortgage
1. Keep Your CIS Vouchers Organised
A common issue we encounter is that CIS contractors do not receive or retain their weekly or monthly CIS vouchers from their employer. Without these, proving income can be challenging. If you’re a CIS subcontractor, make sure to request and keep copies of your CIS payslips as they are essential when applying for a CIS contractor mortgage.
2. Work with a Specialist CIS Mortgage Broker
Not all mortgage lenders understand CIS income structures, and working with a knowledgeable, whole-of-market mortgage broker—such as Quanstrom Financial—is crucial. We have access to specialist CIS mortgage lenders who offer more flexible and higher borrowing potential based on your gross CIS income rather than taxable profit.
3. Choose the Right Income Assessment Period
Selecting the right income assessment period is important. If your work is seasonal, a 12-month average may be the best choice. If you’re applying during peak season, a 3-month average may enable you to borrow more. An experienced CIS mortgage broker can help determine the most advantageous approach for your situation.
Why Choose Quanstrom Financial for Your CIS Contractor Mortgage?
At Quanstrom Financial, we specialise in securing the best mortgage deals for CIS subcontractors across Eastbourne, Brighton, Hastings, Kent, Surrey, Sussex, and the wider South-East region. Our expert team understands the unique income structures of CIS contractors and works with CIS-friendly lenders who offer the most favourable mortgage terms.
Contact Quanstrom Financial today to discuss your CIS contractor mortgage options and ensure you secure the best mortgage deal possible!
- You want to maximise your borrowing potential based on your latest financial performance.
Why Choose Quanstrom Financial?
At Quanstrom Financial, we specialise in finding the best mortgage solutions for company directors across Eastbourne and the entire South-East of England. We work closely with a range of lenders, including those who take a more flexible approach to assessing company directors’ income. Whether you prefer a lender who uses personal tax calculations, company net profits, or the latest accounts, we can help tailor a mortgage to your specific needs.
Get in touch with us today to discuss your mortgage options and secure the best deal for your circumstances.
