CIS mortgage stands for Construction Industry Scheme. It permits the self-employed traders to reflect their earnings in an accurate fashion to the mortgage lenders. By the passage of time, the term CIS mortgage has been in great use and has attached the meaning of that mortgage which is offered to someone who has already signed up for the CIS programme.
One of the issues which the sole traders face is that their declared income is very less while applying for a mortgage as compared with their original income. If you want assistance in applying for CIS mortgages, you must reach out to Mortgage Experts Online. They are a team of experts based in the UK who help people in their mortgage application process.
Their team has rich experience in helping others. You can easily avail the benefit of their expert advice in the comfort and safety of your home by video calling facilities too.
Eligibility for CIS mortgages
The CIS mortgages are available to self-employed people who are engaged in the construction industry. It is not limited to the actual construction of buildings, but is applicable to some allied activities too, for example, architecture. The CIS scheme makes an overseeing authority responsible for the management of the sub-contracted work and workers, etc.
Instead of relying on your assessed figures submitted to HMRC, the mortgage lenders consider the gross turnover as your total income.
How are the chances of your mortgage increased by the CIS scheme?
There are multiple allied benefits when you are signed up for the CIS scheme:
- Higher mortgage limit – the money lenders take up your annual income as the anvil on which the size of your mortgage will be determined. At max, they provide four times your annual income. There are some exceptions where they may be willing to reach 5 of 6 times.
- One year of accounts – most of the time, the CIS mortgage providers will take a look at your total income for the past twelve months. This means that you do not have to keep a record of three to four years history of your annual earning which is usually the norm in the mortgages for self-employed workers.
This also means that you will be eligible for a mortgage as early as two years as compared to an ordinary mortgage.
- Better deals – Since you will be able to show a higher level of income, the mortgage rates will also significantly go up. It might even be the case that you do not even require a four times mortgage of your annual income. CIS schemes give you access to a huge variety of mortgages at lower rates.
While dealing with lenders, you must always consider seeking advice from experts in the field. They have a huge exposure which you lack and they might have possibly already encountered the problem that you are facing. They also have the best solutions to your issues. Thus you must not be hasty in your approach.