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Construction Industry Voucher Scheme Mortgages
Being self-employed can sometimes cause problems when you want to apply for a mortgage. Writing expenses off against income is great for reducing tax liability but unfortunately when it comes to applying for a mortgage, lenders use your net profit figure when calculating mortgage affordability.
If you are a tradesman paid through the Construction Industry Scheme or commonly known as CIS Vouchers. We can use the gross value of your CIS Vouchers. There are two high street lenders which offer great competitive rates and will require either 3 months CIS Vouchers or 12 months CIS Vouchers depending on which lender we approach.
How does it work? You need to be a sub-contractor working for one company predominately. The lender will then take the last 3 months CIS Vouchers where your tax has been deducted at 20% at source by your employer. They will take the gross value of the CIS Vouchers and they would then annualise this amount. These lenders who are prepared to accept your gross pay for calculating affordability. This is generally makes a massive difference and helps affordability and will help you get the mortgage you deserve.
The lender will also require corresponding bank statements showing the income received for your CIS voucher income along with the vouchers themselves.
You need to take into account any monthly commitments such as credit cards, loans, mail order catalogue credit etc, but this would be the same with any mortgage.
Even people with credit problems in the past can still apply for competitive mortgages, provided you have 3 to 12 months CIS payslips and no credit defaults or CCJ's in the last 2 years.