Securing a CIS mortgage as a self employed subcontractor can feel complex, particularly when your income varies or you work under the Construction Industry Scheme (CIS). If you are your own boss, mortgage lenders will assess your income differently from a standard PAYE employee.
However, many mortgage lenders now understand how CIS income works and are open to applications from CIS workers with the right documentation.
Whether you are a first time buyer or looking to remortgage, understanding how lenders assess income, bank statements and eligibility criteria will strengthen your mortgage application.
Here at Jones & Young, our guide explains what has changed in 2025 and 2026, what most lenders look for, and how to prepare if you want to get a mortgage as a self employed contractor.
Whatโs Changed for CIS Mortgages in 2025 and 2026?
The mortgage market continues to adjust to the needs of self employed borrowers, including those working under the Construction Industry Scheme CIS. While the fundamentals of a CIS mortgage remain the same, there have been ongoing regulatory discussions and affordability changes that may influence how lenders assess income and mortgage applications in 2026.
Before submitting a mortgage application, it helps to understand how these developments could affect your eligibility and borrowing capacity.
FCA Review of Mortgage Rules
The Financial Conduct Authority has been reviewing mortgage regulations to ensure they remain suitable for modern borrowers, including self employed people, contractors and applicants with variable income. The focus has been on balancing flexibility for lenders with continued consumer protection.
For CIS workers, this means some mortgage lenders are re-examining how they assess gross income, track record and employment status. While not all lenders have changed their lending criteria, there is growing recognition that CIS income structures differ from traditional PAYE employment.
As a result, more specialist lenders and some high street lenders may now take a broader view of:
Consistency of income
Same industry track record
Overall affordability
This does not guarantee approval, but it may improve access to mortgages for some subcontractor mortgages compared to previous years.
Stamp Duty and Budget Planning
Stamp Duty Land Tax changes introduced in April 2025 remain in place in 2026. For standard buyers:
0% on the first ยฃ125,000
2% from ยฃ125,001 to ยฃ250,000
5% from ยฃ250,001 to ยฃ925,000
First time buyers currently receive relief up to ยฃ300,000.
These thresholds directly affect how much you need for a deposit and other upfront costs when applying for a CIS mortgage. When planning to get a mortgage, itโs important to factor stamp duty into your overall affordability alongside mortgage payments, fees and operating costs.
Understanding CIS Mortgage Eligibility Criteria
When applying for a CIS mortgage, lenders assess your income differently from a standard PAYE employee. Because you are classed as self employed under the Construction Industry Scheme, mortgage lenders will review your income structure, employment status and overall track record before approving your mortgage application.
Most lenders will consider the following eligibility criteria:
Length of time working under the CIS scheme
Consistency of gross income
Whether you have remained in the same industry or same field
Your credit score and credit file history
Evidence of stable contract work
Trading History Requirements
If you are a self employed contractor who recently moved from employed contractor status, lenders may also look at your previous employment history, particularly if you worked in the same industry or for the same employer before moving into self employment.
Applicants moving from fixed term contracts or a zero hours contract into CIS work may still be considered, provided they can demonstrate continuity of income and a stable track record.
Essential Documents Youโll Need
To strengthen your CIS mortgage application, you will usually need:
3 months CIS payslips or CIS payment statements
3โ6 months of bank statements showing income deposits
Proof of identity and address (such as utility bills)
Most lenders focus on gross income before income tax deductions, although they may also review self assessment records to understand your overall financial position, affordability is based on your gross CIS income. Keeping bank statements and income records organised throughout the year can make the application process smoother.
If you have bad credit, car finance commitments or other debts, these will also be considered as part of your overall affordability assessment.
How Lenders Calculate CIS Income?
When assessing a CIS mortgage application, mortgage lenders use different methods to calculate your income. Because CIS workers are classed as self employed, the way your income is assessed can directly affect the maximum loan available to you.
Most lenders will review your gross income rather than relying solely on net income after tax and national insurance. However, the method used can vary depending on the lenderโs lending criteria.
Unlike older self cert mortgages, which are no longer available, modern CIS mortgage applications require clear evidence of income through bank statements and CIS payslips.
Common approaches include:
1. Projected Annual Income
Some mortgage lenders calculate your applicantโs income in a similar way to a salaried employee. This may involve:
Day rate ร number of days worked per week
Multiplied by 46โ48 working weeks
This method can be helpful if you have a consistent current contract and a stable track record of contract work in the same industry.
2. Historical Average Income
Other lenders prefer to average your gross income over the past 12 months. This provides a broader view of your average income and may benefit self employed people whose income varies seasonally.
In both cases, lenders will review:
Bank statements
CIS payslips
Your credit score and overall financial commitments
The way your income is calculated will influence your borrowing capacity, interest rate offered, and overall mortgage options. This is why many self employed contractors choose to seek advice from a contractor mortgage broker who understands how different lenders assess CIS income.
Practical Steps to Strengthen Your Application
If you want to get a mortgage as a self employed contractor, preparation matters. Mortgage lenders will look closely at your income, bank statements and overall financial profile before approving subcontractor mortgages.
Here are practical steps that can improve your mortgage application:
Keep Clear Financial Records
Maintain organised CIS payslips and payment statements
Keep 3โ6 months of bank statements showing regular income deposits
Ensure business accounts and self assessment records are up to date
Most lenders will focus on your gross income when assessing affordability, but a clear record of income and operating costs supports your application.
Separate Business and Personal Banking
Using one account for contract work income helps mortgage providers verify your earnings more easily. Mixing personal spending with business transactions can complicate the application process.
Review Your Credit Report
Before submitting a mortgage application:
Check your credit file for errors
Monitor your credit score
Address any bad credit issues where possible
Specialist lenders may consider applicants with previous credit problems, but having a good credit score can widen your mortgage options and potentially improve the interest rate offered.
Manage Existing Commitments
Lenders will review:
Car finance agreements
Credit card balances
Other debts
Reducing unsecured debt before applying for a contractor mortgage can improve affordability and borrowing capacity. If you are applying for a higher mortgage amount, lenders will assess whether your income can comfortably support increased mortgage payments without placing you in a higher risk category.
Understand Your Affordability
Calculate how your income translates into realistic mortgage payments. Mortgage lenders assess whether your applicantโs income can comfortably support repayments alongside other financial commitments.
If your income varies, prepare to explain fluctuations clearly as part of the mortgage application.
Considering Other Mortgage Types
If you are planning to purchase an investment property, some lenders also offer buy to let mortgages to CIS registered workers, although the lending criteria may differ from residential mortgages.
Where income tax liabilities, business structure or self employment status affect affordability, seeking advice before applying can help clarify your mortgage options.
Why Use a Specialist CIS Contractor Mortgage Broker?
Applying for a CIS mortgage can involve more detailed income assessment than standard mortgages. While it is possible to apply directly to some mortgage lenders, working with a specialist mortgage broker can help you understand which lenders are more familiar with Construction Industry Scheme income structures.
Some building society lenders and specialist lenders assess CIS income differently from larger high street lenders, which can influence the mortgage options available.
A contractor mortgage broker can:
Identify lenders whose lending criteria suit CIS workers
Explain how different lenders calculate gross income
Outline available mortgage options across specialist lenders and some high street lenders
Support you through the mortgage application process
Because most lenders assess self employed applicants differently, understanding how your income will be reviewed can make a practical difference to your application.
Whether you choose to apply directly or through a mortgage broker, seeking advice before submitting a mortgage application can help you approach the process with greater clarity.
CIS Mortgage FAQs
Here at Jones & Young, we’ve answered some common questions about CIS mortgages and how mortgage lenders assess self employed applicants working under the Construction Industry Scheme CIS.
Am I eligible for a CIS mortgage?
Yes, many CIS workers are eligible for a CIS mortgage, provided they meet lender eligibility criteria. Most lenders will assess your income history, current contract, credit score and overall financial commitments before approving a mortgage application.
How much income history do lenders require?
For most subcontractor mortgages, lenders look for between 3 and 12 months of CIS income. Some specialist lenders may consider shorter histories if you can show a strong track record in the same industry or same field.
Can I get a mortgage if I am self employed with variable income?
Yes. Mortgage lenders understand that self employed people and contractors may not earn the same amount every month. They will usually calculate average income based on CIS payslips or bank statements to assess affordability.
What documents are needed for a CIS mortgage application?
Most lenders will ask for:
-
Recent CIS payslips or payment statements
-
3โ6 months of bank statements
-
Proof of identity and address
-
Business accounts or self assessment records if applicable
These documents help mortgage providers verify your income and employment status.
How do lenders calculate my income for mortgage purposes?
Lenders may annualise your gross income based on your day rate and current contract, or calculate an average income over 12 months. The method used will influence your borrowing capacity and the mortgage options available.
Can I get a CIS sub contractor mortgage with bad credit?
It may still be possible to get a mortgage with bad credit, but your credit report and credit file will be reviewed carefully. Specialist lenders may consider applicants with previous credit issues, though interest rates and terms may differ.
Does being a limited company contractor affect my mortgage application?
If you operate through a limited company or umbrella company, lenders may assess your income differently. In some cases, they will review business accounts alongside CIS income to determine affordability.
Do CIS workers pay higher interest rates?
Not necessarily. Many lenders offer the same rates to CIS workers as to employed contractor applicants, provided the mortgage application meets affordability and lending criteria. The interest rate offered will depend on your credit score, income level and overall risk profile.
