CIS Mortgages

If you work under the Construction Industry Scheme (CIS), getting a mortgage doesn't have to mean the same lengthy process as a standard self-employed application. Some lenders treat CIS workers differently to the traditional self-employed route, which can mean fewer years of accounts required and a faster path to an offer — provided your application goes to the right lender. As a whole-of-market broker, we work with CIS workers regularly and know exactly which lenders are set up for this type of income.

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What is CIS?

The Construction Industry Scheme is a UK government-run scheme requiring contractors to deduct money from a subcontractor's payments and pass it to HMRC as an advance payment towards the subcontractor's tax and National Insurance. If you work in construction and earn more than the registration threshold, you'll typically need to register under CIS, with tax deducted at source — usually 20% for registered subcontractors, or 30% if you're not registered. You can read the official rules on the Construction Industry Scheme on GOV.UK.

In practice, this means you receive payslips with tax already deducted, then submit annual accounts to HMRC which determine your net profit and any final tax and National Insurance due. This dual structure — part payslip, part annual accounts — is exactly what makes CIS mortgage applications different from both employed and self-employed applications, and it's why lenders assess them on their own terms.

How lenders assess CIS mortgage applications

There are two broad approaches lenders take, and which one applies to you can significantly change how much you're able to borrow:

Treated as self-employed. Most lenders assess CIS workers this way, basing affordability on your net profit after tax and expenses, as shown in your accounts. This route typically requires two years of accounts, in line with standard self-employed lending criteria, and your income figure will usually be an average of the last two years' net profit.

Treated as employed. A smaller number of lenders will instead work directly from your gross CIS payslips rather than your net profit after accounts. This route doesn't always require the full two years of trading history that self-employed assessment demands, which can mean you're able to apply for a mortgage sooner if you've only recently moved into CIS work or started subcontracting.

The difference between these two approaches can be substantial. Because gross payslip income is typically higher than net profit after allowable expenses and tax, being assessed as "employed" can sometimes unlock a larger mortgage than the self-employed route would, even for the same underlying income. This is one of the main reasons it's worth getting specialist advice rather than applying directly to your own bank, since not every lender publishes which approach they take, and the wrong choice of lender can mean a lower offer than you're actually able to support.

How much can you borrow with a CIS mortgage?

As with any mortgage, lenders typically use an income multiple, commonly in the region of 4 to 4.5 times your annual income, though this varies by lender and some will stretch further depending on your overall circumstances. What's unusual about CIS is the assessment period: most lenders will look at your last twelve months of income rather than the two or three years of accounts a standard self-employed applicant would need to provide. This means CIS workers can often apply for a mortgage sooner after starting subcontracting work than a traditional self-employed applicant could.

What deposit do you need for a CIS mortgage?

CIS mortgages are less widely available than standard residential mortgages, but deposit requirements aren't necessarily higher across the board. Some lenders will still offer a 95% mortgage to CIS workers with strong, consistent income. As a working example, on a £150,000 property that would mean a minimum deposit of £7,500. That said, a larger deposit — 10% or more — will typically widen your choice of lenders and improve the rates on offer, which is worth factoring in if you're able to save a bit more before applying. You can use our mortgage calculator to get a rough sense of what you might be able to borrow.

How is a CIS mortgage different from a standard mortgage?

There's no difference in the mortgage products themselves — you're not restricted to a smaller pool of deals or a specific type of mortgage because you work under CIS. What differs is the advice and the application process. You'll still need a solid deposit and proof of income, but which documents count as proof, and how a lender interprets them, depends on whether they treat you as employed or self-employed for assessment purposes. This is exactly the kind of detail we talk through with clients during their appointment, since it can shape which lenders are worth applying to and which aren't.

How to apply for a CIS mortgage

If you work under a CIS contract and are ready to explore a mortgage, get in touch and we'll talk you through your options. We work with a range of lenders who are comfortable with CIS applications, and our advisors are well versed in matching CIS income — whether assessed as employed or self-employed — to the right lender for your circumstances. You'll typically need your CIS payslips or statements, your most recent tax returns or accounts, proof of deposit, and photo ID to get started, though we'll confirm exactly what's needed for your situation once we understand your circumstances.

Related mortgage situations

If you're not sure whether CIS or standard self-employed assessment applies to you, our self-employed mortgages page covers the traditional route in more detail. If you work through your own limited company rather than as a CIS subcontractor, our contractor mortgages page may be more relevant to your situation. And if you've previously had an application declined, whether under CIS or otherwise, it's worth reading our guidance on what to do after a declined mortgage before applying again.

Frequently asked questions

Do I need two years of accounts for a CIS mortgage?

Not always. If a lender assesses you as self-employed, they'll typically want two years of accounts, in line with standard self-employed criteria. If a lender assesses you as employed, working from your gross CIS payslips instead, you may not need the full two years of trading history, which can make a real difference if you're newer to CIS work.

Will I be assessed on gross or net income?

It depends on the lender. Some work from your net profit after tax and expenses, as shown in your annual accounts, in the same way they would for a self-employed applicant. Others work from your gross CIS payslips before deductions. Because these can produce quite different affordability outcomes, this is one of the first things worth clarifying before choosing which lender to apply to.

Can I get a CIS mortgage with less than 12 months of CIS income?

It's more limited, but not automatically ruled out, particularly with lenders who assess CIS income as employed rather than self-employed. The stronger and more consistent your income and payslip history, even over a shorter period, the more options are likely to be available to you.

Does registering as CIS instead of standard self-employment affect my mortgage options?

It changes which lenders are the best fit rather than closing off options altogether. Because CIS sits between employed and self-employed status, some lenders have specific criteria for it, while others simply apply their standard self-employed rules. A broker who knows which lenders take which approach can save you from applying to the wrong ones first.

Speak to a CIS mortgage specialist

Getting a mortgage as a CIS worker doesn't need to be more complicated than any other application — it just needs to go to a lender who understands how your income works. As a whole-of-market broker with access to over 12,000 deals from more than 100 lenders, we can identify which of them are the right fit for your specific CIS situation.

Get started and talk to us today.