What is a CIS Mortgage?

A CIS mortgage is a specialist way lenders assess the income of self-employed subcontractors paid under the Construction Industry Scheme (CIS).

The Construction Industry Scheme (CIS) is a UK government system that regulates payments between contractors and subcontractors, ensuring tax is deducted at source.

Important:
A CIS mortgage is not a different mortgage product - it’s simply a different way of assessing your income.

Instead of using your net profit (after expenses), lenders often use your gross CIS income (before expenses), which can significantly improve your borrowing power.

You may qualify if you are registered under CIS as:

• A sole trader
• A subcontractor
• A limited company director (paid via CIS)

Typical eligible professions include:

• Bricklayers
• Carpenters
• Electricians
• Plumbers
• Site managers
• Architects
• Other construction-related professionals

As long as you meet lender criteria and can show consistent income, you may qualify. 

1. Higher Usable Income

 Instead, gross CIS income (before expenses) can significantly improve your borrowing power. This often results in higher borrowing capacity and a better affordability assessment. 

2. Fewer Documents Required

 Compared to traditional self-employed applications, CIS mortgages are simpler. You typically need CIS payslips (3–12 months), bank statements (3–6 months), your UTR number, proof of ID and address, and a credit report. There is no need for full accounts in many cases. 

3. Faster Access (Even If Newly Self-Employed)

Traditional self-employed mortgages usually require 2–3 years of accounts. With CIS, many lenders accept just 3–12 months of payslips. This makes it ideal for newly self-employed contractors and workers with limited trading history.

4. Flexibility for Contractors

 Lenders focus on consistent income and ongoing work availability. Even if you change sites or work with different contractors, you can still qualify as long as your income remains stable. 

5. Access to Specialist Lenders

 Some lenders specialise in contractors, tradespeople, and irregular income earners. These lenders understand CIS deductions, use tailored affordability models, and often offer more flexible criteria. 

Most CIS mortgage applications require:

• 5%–10% minimum deposit

Example:

Property price = £350,000

• 5% deposit = £17,500
• Mortgage = £332,500

Why a Larger Deposit Helps

A higher deposit can lower your interest rate, increase your approval chances, and give you access to better mortgage deals.

Loan-to-Value (LTV) Explained

• 5% deposit → 95% LTV (higher risk)
• 20% deposit → 80% LTV (lower risk)

Using Gifted Deposits

You can use money from family, provided you have a gift letter and proof of funds.

Step 1: Prepare Your Documents

CIS payslips (3–12 months), bank statements (3–6 months), ID and proof of address, SA302 or tax overview (if required), and details of debts and expenses.

Step 2: Understand Your Borrowing Power

Lenders typically assess income using:

Annual Income = Average Monthly CIS Income × 12

(Some lenders may also annualise based on payslips.)

Step 3: Speak to a Specialist Broker

This is the most important step.

A specialist broker will match you with CIS-friendly lenders, structure your application correctly, reduce the risk of rejection, and maximise your borrowing potential.