If you work as a subcontractor in the construction industry it is likely you will be part of the ‘CIS’ – Construction Industry Scheme. Although you are technically self-employed, the people you work for will often pay your tax at source, so this can feel as though you are employed.
Being self-employed affects your mortgage application process. Your income is treated differently as a self-employed borrower and frequently it is a case of the lender won’t provide sufficient monies for you to achieve your objectives.
We know what seems like a ‘secret’ criteria that benefits CIS workers. Carry on reading and we’ll share how this ‘secret’ criteria can benefit you.
As a construction industry sub-contractor most mortgage lenders will treat you as a self-employed person and only look at your net income after deductions of expenses such as petrol, tools, van maintenance for example that you claim against for tax purpose. This reduces the amount you are able to borrow.
What is the ‘secret’ criteria to benefit you?
Number One Mortgages know a couple of lenders who will treat you as employed due to your status as ‘employed under the CIS scheme’. This frequently enables you to borrow more on your mortgage as they take in to account your gross earnings before expenses and tax.
When increasing your borrowing, affordability needs to be considered. If you have any concerns over the affordability of borrowing more on your mortgage you can discuss this with your Number One Mortgages professional adviser. We can help you ensure you have the capability to borrow more without affordability implications. Mortgage interest rates are at a record low currently, so borrowing is more affordable than ever.
Whether you are looking to buy for the first time, moving home or remortgaging to release capital this ‘secret’ is likely to benefit you as a CIS worker.
Want to find out more call an adviser on 01273 736536 or enquire here.
Also if you know a friend or family member who does work in the Construction Industry, get in touch with Number One Mortgages friendly team who will be happy to discuss your options with you. 01273 736536