We have access to lenders that are used to approving mortgages for tradespeople paid through CIS – and they’ll look at your income before tax has been deducted to calculate how much you can borrow.
Being paid through CIS doesn’t limit you – it gives you greater freedom because lenders that understand how you’re paid can sometimes offer larger loans in relation to your income.
That’s because rather than looking at your income post-tax, they’ll calculate the amount you can borrow based on what you earn before tax is deducted.
Ask us for help – we’ll show you the lenders that could be worth your time.
Alternatively, we can also help you port your current mortgage deal over to your new property.
The first thing you need to know is how long you have left on your current mortgage, and how much that would cost if you were to stick with your current lender and their terms.
Then, your mortgage advisor can look at your circumstances, listen to what you want from a mortgage and compare the viable options.
They’ll calculate costs, check your eligibility without damaging your credit score and tell you the pros and cons of each option.
That’s how you’ll find the best deal.
If it works out that your current deal is the best available, your mortgage broker can also help you transfer it over from your old property to your new one.
If your current mortgage lender doesn’t offer you the best deal on the market, it might not be worth porting (transferring) your current deal across to your new property.
The good news is that other lenders could be keen for your custom.
Opportunity Mortgages works with CIS-friendly mortgage providers, so we eliminate irrelevant options and find what you need quickly.
Most lenders cap their mortgages at 1 million, but the amount that you’ll be able to borrow will be based primarily on your income.
A lender that can provide mortgages to CIS workers will typically offer a mortgage based on 4.5x your gross CIS income (your income before tax).
If you’re earning £200 a day as a plumber, that’s £1,000 a week, and roughly £52,000 a year. However, most lenders will assume that you’ll take breaks during the year, so rather than multiply your income by 52 weeks (for a full year, they’ll multiply your income by 46. For this example, that would leave a gross income of £46,000.
Here’s how much you could borrow based on the different income multiples that lenders use:
To find out how much you could borrow based on your income and other circumstances, ask an Opportunity Mortgages broker.
You might not be required to put down a deposit, but usually, whether you’re a CIS worker or not, you’ll need 5% of the market value of the property.
So, if your mortgage broker says the amount you can borrow is likely to be £207,000 based on your income, a 5% deposit would be £10,350.
However, it’s worth bearing in mind that if you’re able to put down a larger chunk, i.e., 10-20%, you may be able to access lower mortgage rates.
That’s certainly not always a given, but it’s worth comparing your options with your broker to find the right balance for you.
You need two things:
Don’t worry if the 12 months are split between the last three months via CIS as self-employed, and nine months of being employed.
It should be fine as long as you can prove it’s the same role, i.e. an electrician (not an electrician and nine months of being a stand-up comedian).
Bad credit is really common – 1 in 14 people have a CCJ.
We don’t care if you have bad credit; we care about your need to find an affordable mortgage.
That’s why you won’t face judgment or snobbery from our team, just a willingness to help.
What’s defined as bad credit varies between lenders, so it helps if you can be upfront about your credit history, so that your broker can filter out the lenders that can’t help you and pinpoint those that can.
Mortgage terms usually span between 20 and 35 years, but the duration of your mortgage will largely be based on your retirement age and your job.
Lenders typically like borrowers to have paid their mortgage before they retire; however, that’s not always the case, as some will consider other forms of income, including pensions or benefits.
Some people prefer a longer mortgage term so that they can stretch their mortgage repayments and make their monthly repayments smaller.
However, by stretching repayments and increasing the term of a mortgage, they repay more in interest overall.
Speak to your mortgage broker about what term-length is best for you.
The costs to think about can include:
Find out whether you’re eligible for a mortgage before you put your house on the market.
Putting your home up for sale and allowing house viewings is time-consuming, so don’t waste your effort unless you know you can get approved with a lender.
If you’re looking to move and you’re paid through the CIS scheme, speak to an Opportunity Mortgages broker for advice on where to find the best mortgage.
