Getting a mortgage whilst working as a subcontractor or Construction Industry (CIS) Contractor can seem difficult, you may have already been turned down by your high street bank.
AL Mortgage Solutions can help.
What is a CIS / Subcontractor?
Many bricklayers, electricians, gas engineers, plasterers etc. work for a larger firm (contractor) on a self-employed basis. The contractor will deduct money (typically 20%) from the subcontractors gross pay for HMRC as an advance contribution towards their Tax & NI liability.
Why do CIS workers / Subcontractors struggle?
Chances are you earn a decent amount of money each week/month BUT at the end of the tax year your colleagues tell you, you should meet with their accountant because they got them a substantial refund last year you should do the same!
What the accountant is doing here is telling the tax man although you earnt a decent sum per week, to earn that money it cost you money (tools/travel/materials etc.) and therefore the PROFIT you made was a lot less. So you want some of that tax back to pay for a nice little holiday…
How Mortgage Lenders Assess You
The reason people struggle is because MOST lenders will treat you as self-employed and request your last 2 or 3 years personal Tax Calculations (SA302s) but as mentioned above to get that nice tax refund that pays for your holiday each year. Chances are the NET PROFIT you’ve declared isn’t enough to support a mortgage.
So How Can We Help?
AL Mortgage Solutions can and have had great success with CIS workers as we know which lenders will treat you as EMPLOYED and allow you to use your GROSS income shown on your CIS slips / Subcontractor statements instead of your Net Profit. Meaning you have more chance of getting the mortgage for the amount you actually need.
You will need to have been a CIS / Subcontractor for a minimum of 12 months and be able to evidence the income with slips (these can be requested from the contractor).
Speak to our mortgage broker for independent advice relevant to your individual circumstances.
Book a free initial consultation by calling 01513293313 / 07412563920 or by emailing email@example.com
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
AL Mortgage Solutions LTD is an Appointed Representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.
Our initial mortgage consultation is free. We will charge a fee between £0 and £500 that is payable on application of a mortgage. The amount we will charge is dependent on the amount of research and administration that is required. A typical fee for a purchase is £349.
AL Mortgage Solutions Registered Office: 54 Sandy Lane, Liverpool, L13 0BT | Registered Company Number: 11312335 Registered in United Kingdom & Ireland