Can I Get A CIS Mortgage With Bad Credit

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Bad credit can seem like a major obstacle to getting a mortgage, but it doesn’t have to be. While having a bad credit score can complicate the process of getting a conventional CIS mortgage, there are still options available for those with less-than-perfect credit scores. In this blog, we’ll be running through some of the ways you can still get a CIS mortgage, even if your credit isn’t in good standing.

What Is A CIS Mortgage

If you’re in the construction industry, the chances are you’ve heard of a CIS mortgage. CIS stands for Construction Industry Scheme and is essentially a specialist mortgage designed for contractors and those in the building trade. It allows you to use your CIS statements like payslips so that you can get a mortgage that accurately represents your income rather than using your taxable income on your SA302/ Tax calculation after deductions and expenses etc. If you’re looking for more in-depth advice, our blog ‘CIS Mortgage Advice: The Ultimate Guide‘ goes into more detail about this type of loan and why it is so beneficial for those in the industry.

CIS Mortgage With Bad Credit

What Is Bad Credit?

Before we dive into how to get a CIS mortgage with bad credit, let’s take a quick look at what constitutes ‘bad credit’. Generally speaking, a bad credit score is a ‘negative assessment of your finances by a credit reference agency based on your history of borrowing (or lack of it)’.

As a general rule, anything above 600 is considered fair or good. A poor credit score can be the result of several things, including missed payments on loans or bills, defaults on mortgages, and bankruptcy proceedings.

How Can I Improve My Credit Score?

If you’re looking to improve your credit history before applying for a mortgage, you can do so by getting on the electoral roll, avoiding taking out more credit than you need and spreading your debt across different accounts. On top of this, it’s also a good idea to pay bills and loans promptly in order to demonstrate that you’re capable of managing your finances responsibly. By doing this, you should see your credit report start to improve each month.

How To Apply For a CIS Mortgage With Bad Credit

When getting started, it’s important to bear in mind that some of the most competitive interest rates and deals may not be available if you have bad credit. Mortgage lenders may be reluctant to approve CIS mortgages if your score is poor, as this means you are potentially a risk. However, there are still lenders who specialise in helping those with a lower-than-ideal credit score access mortgages.

This is where working with a specialist mortgage broker can be beneficial. Not only will they be able to identify lenders who are comfortable offering mortgages to those with bad credit, but the broker can also act as a helpful mediator between you and the mortgage lender. They’ll be able to answer any questions you may have, provide advice based on their industry experience, and help ensure that all legal paperwork is signed off correctly and promptly. This can help you to secure the best mortgage out there, even if your credit is less than ideal.

Here at Jones and Young, we’re specialist mortgage brokers who specialise in helping those in the construction industry get access to the best possible deals. We understand that everyone’s situation is different and we can tailor our services accordingly. The first step in getting approved for this type of mortgage is to get in touch with us today!

Is it Harder to get a Mortgage as a CIS Worker With Bad Credit?

Is It Harder To Get A Mortgage As A CIS Worker With Bad Credit?

Yes, whilst it is harder to get a mortgage as a CIS worker with bad credit, it’s not impossible. Whilst you may have to pay slightly higher interest rates on your loan, you’ll still be able to get access to a range of mortgages. The key is to work with a reputable mortgage broker who specialises in helping those in the Construction Industry Scheme (CIS) and who can help you find the best possible deal for your circumstances.

How Much Deposit Do I Need?

The size of the deposit you need to secure a CIS mortgage will vary depending on your credit history and unique financial situation. However, as a general rule, it’s recommended that you save up at least 15%% of the value of the property. This size deposit and can help to improve your chances of being approved for the loan whilst also helping to reduce the amount of interest you’d need to pay back.

How Much Could I Borrow For A Bad Credit Mortgage As A CIS Worker?

The amount you can borrow as a construction industry scheme worker will be based on your gross income. To work out exactly how much you’re eligible for, brokers will calculate CIS worker’s average monthly income based on their CIS statements. They’ll then use this to work out an annual income.

Roughly, lenders offer CIS mortgages that allow you to borrow up to 4.5 times your annual income. However, this may vary depending on the type of mortgage you’re applying for, as well as whether or not you have bad credit. Construction industry scheme mortgages will take this into account, so it is important to speak with a mortgage broker to get an accurate figure.

CIS Mortgage Bad Credit Advice

CIS Mortgage Bad Credit Advice

Let’s review some top tips that you should consider if you’re applying for a contractor mortgage as a CIS worker with bad credit.

Ensure That Your Income Is Up To Date And Accurate

CIS mortgage lenders will want to see recent proof of your earnings, so making sure this is up to date is essential. In addition, you’ll want to double-check your business accounts, if you have any, as these may be taken into consideration as well.

Consider Increasing The Size Of Your Deposit

This can help reduce the likelihood of lenders rejecting your mortgage application. A higher deposit/ higher interest rate is usually used if the applicant has a poor credit score.

Work With An Experienced Mortgage Broker Who Understands The CIS Scheme

They’ll be able to identify lenders who are willing to offer you the best mortgage deal. Not only do they specialise in bad credit mortgages, so they have access to a range of connections, but they’ll also help speed up the process.

Make Sure That All Legal Paperwork Is Signed Off Correctly And On Time

This will help give your application a better chance of being approved quickly and efficiently.

We hope that this blog post has helped answer your questions about getting a mortgage as a CIS worker with bad credit. If you would like to find out more about the services we offer, please do not hesitate to get in touch with us today. We look forward to helping you secure the best deal possible!

You may also like: What Do Mortgage Lenders Look For?: The Ultimate Guide

CIS Mortgages & Bad Credit FAQs:

We’ve answered some of the most frequently asked questions about CIS mortgages below:

CIS workers may find it harder to get a mortgage than other workers, but it isn’t impossible. It’s important to get in touch with an experienced broker who specialises in the Construction Industry Scheme and can help you find the best deal for your circumstances. This way, you can access the same deals that have been tailored to your individual circumstances.

There’s no ‘magic number’ when it comes to finding the perfect mortgage, but if you have a 500 credit score, then it’s still possible to get approved for a loan. It’s important to remember that lenders consider individual circumstances when deciding whether to approve an application, so your score isn’t the only factor.

Again, there’s no one-size-fits-all answer as lenders will consider many different factors when assessing your application. Generally speaking, a credit score above 400 is usually considered to be the minimum required. It’s important to note that having a good credit score isn’t always enough, so speaking with an experienced mortgage broker can help you get the best deal possible.

The first step is to contact a mortgage broker who specialises in CIS mortgages. They’ll be able to use their knowledge and connections to find lenders that are willing to offer you the best deal for your circumstances. In addition, having a good income means that you’re more likely to be accepted for a loan as it gives lenders confidence in your ability to make repayments. Just make sure that you have all the necessary paperwork in order before applying.


Mark Jones - Specialist Mortgage Lender


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Richard Young - Expert in lifetime mortgage and later life lending options.


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Jones & Young are professional mortgage lenders, delivering industry-leading mortgages to first-time buyers, self-employed and CIS customers for over 10 years.

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