Residential Purchase Cis Contractor Income

The Clients

The applicant was purchasing a residential property and worked as a contractor within the construction industry under the Construction Industry Scheme (CIS). They had over three years’ experience in the same trade and a consistent work history within the same sector.

The Challenge

Despite stable earnings, the client’s income type created difficulties with many lenders.

CIS income is often treated inconsistently across the mortgage market. Some lenders assess CIS contractors as self-employed, requiring two or more years’ accounts and tax calculations. Others apply deductions or average income in a way that significantly reduces borrowing capacity.

In addition, the lender required 12 months of CIS statements to demonstrate income continuity. Without careful presentation, the application risked being declined or the borrowing amount reduced despite the client earning sufficient income in practice.

The Solution

We reviewed lenders that assess CIS applicants using a more practical approach and structured the application around actual earnings rather than tax classification.

We collated and presented:

• 12 months CIS payment statements

• Supporting bank statements

• Ongoing contract evidence

• Work continuity within the same trade

By clearly evidencing the sustainability of earnings and explaining the nature of CIS contracting, the application was assessed based on real income rather than being treated as a traditional self-employed case.

We secured the mortgage on the following terms:

Loan amount: £340,000

Rate: 3.97% fixed

Term: 32 years

Product fee: £995 (added to the loan)

The Outcome

The lender was satisfied with the income evidence and issued a mortgage offer, allowing the client to proceed with their purchase smoothly.

Despite many lenders being cautious with CIS income, the application was successful because it was structured and presented appropriately. The case demonstrates that contractors paid under CIS can obtain residential mortgages when the case is matched to a lender that understands this income type.