Home Mover CIS Mortgages

Opportunity Mortgages has access to lenders that provide home mover mortgages to subcontractors paid through the CIS (Construction Industry Scheme).

What are my mortgage options if I’m signed up for the CIS scheme and looking to move?

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.

Porting a mortgage to a new property if you’re paid through CIS

The first thing you need to know is how long you have left on your current mortgage, and how much that would cost you.

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 may be able to help you transfer it over from your old property to your new one.

Finding a new deal if you’re paid through CIS

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.

What’s the maximum amount that can be borrowed on a mortgage as a CIS worker and a home mover?

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.

Here’s how much you could borrow based on the different income multiples that lenders use:

TABLE

What’s the minimum deposit?

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 £234,000 based on your income, a 5% deposit would be £11,700.

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.

What are the eligibility criteria for a home mover mortgage if somebody is part of the CIS scheme?

You need two things:

• You need to have been paid through the CIS scheme for at least three months
• You need a track record of working in that job role, in that industry, for at least 12 months.

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).

Can I qualify for a mortgage as a home mover if I’m a CIS worker with bad credit?

Bad credit is really common – 1 in 5 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.

How long can I take to pay back my mortgage if I’m paid through the CIS scheme?

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. 

What fees do you pay if you’re getting a mortgage and moving into another property?

The costs to think about can include:

• Solicitor fees (typically £2,000 in total fees, including government charges, land registry, ID checks and anti-money laundering checks)
• Estate agent fees (typically, estate agents in the UK charge between 1% and 1.5%)
• Property survey fees (£0 depending on the lender, but could cost upwards of £500)
• Mortgage broker fees (Our fee is £599)
  Removal fees (£1,600 typically for a three-bedroom house in the UK).

Do this first

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.