Subcontractors and CIS Vouchers mortgages
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Subcontractors in the building industry form one of the largest groups of self-employed workers. They can often be overlooked by mortgage lenders because they are in the middle-ground between traditional employment and self-employment.
These important group of sub-contractors will often receive payment through one employer and will either receive a day rate for their services or price work for an agreed job. Tax is deducted by the employer at 20% and the employer issues what is known as a Construction Industry Scheme Voucher or CIS Voucher.
Most lenders in the UK will consider these types of workers as a higher risk and will work on their self-employed net profit and will want them to be self-employed for a minimum of 2 years.
At Prosper Home Loans we specialise in self-employed mortgages for sub-contractors. It is possible to use the gross income for either a 3-month or 12-month period. This means that a self-employed sub-contractor could be in a position where they have only been self-employed for 3 months and be able to obtain a mortgage based on their day rate or price work they have received during this period.
Affordability in obtaining a CIS Voucher mortgage or sub-contractor mortgage is easy to calculate. We would be able to assess the amount you can borrow by one of the following
Day rate (£180) x 5 days x 13 weeks = £11,700 this figure is then annualised giving an income of £46,800.
Price Work would work exactly the same as the day rate. The only important thing to remember is that there needs to be a regular CIS Voucher and matching payment that is paid directly into your bank account. This has to be weekly or monthly.
This is a really important way to improve your chances in getting a mortgage. By using Prosper Home Loans and the exclusive access to criteria and lenders that will accept your Construction Industry Scheme income at high street rates.
Subcontractor mortgages can be a great way of increasing your affordability with the CIS Voucher scheme. These mortgages can also be used for remortgage and debt consolidation, and a further advance remortgage.
Call today and Prosper Home Loans will guide you through the complicated sub-contractor, CIS Voucher mortgage process.