BUILDING CONTRACTOR / CIS MORTGAGES

In the UK, a building contractor mortgage is a mortgage type that caters specifically to self-employed construction industry workers. These mortgages are tailored to the unique financial situations of building contractors, considering factors like their inconsistent income and project timelines, to provide them with the necessary financing to purchase a home or investment property. For a successful application, lenders may request proof of income and employment, a track record of completed projects, and desire a sound credit score. Compared to traditional mortgages, building contractor mortgages can have different terms, rates, and criteria, and are often available from lenders specialising in the construction sector.

Building contractor mortgage applications can be tricky, as you tend to operate on a contract-by-contract basis. That means that the process is not as straightforward for traditional mortgage lenders to understand. But that doesn’t mean that it’s impossible. Our team can help you find the best mortgage for your specific situation.

In this situation, ams: can find a lender that will assess your mortgage application without accounts. However, you will need to provide other documentation to prove your income and eligibility.

If you operate under the Construction Industry Scheme (CIS), where 20% tax is deducted at source, and you have been doing this for six months or more, then mortgage lenders may only require the gross total amount earned over the first six months.

If you are not operating under CIS but are a contractor, lenders may request the following documentation to prove your income when applying for CIS mortgages:

• Historic contracts.
• Tax returns.
• Personal and business bank statements dating back three months.
• An overview of your deposit.

As well as additional documentation as part of the overall application.

The deposit amount needed for a building contractor mortgage is subject to several factors such as the lender's requirements and your financial situation. You could procure a mortgage with a 5% down payment; however, we recommend saving as much as possible to increase the amount you could borrow. In addition to saving a strong deposit, ensure that your credit score is as high as possible.

Some lenders may ask for a higher deposit, especially if you are deemed a higher-risk borrower due to your self-employed status or a low credit score. Leave finding a mortgage offer to ams: our experts will advise on the best mortgage to meet your needs.

Remember, if we can’t help, it’s not possible!

Some mortgage lenders will require evidence of an active contract to consider your application. If you aren’t currently under contract, we recommend that you get in touch so that we can tailor our recommendations to your specific circumstances.

Getting a mortgage for building contractors with bad credit is more difficult compared to those with good credit scores. Nevertheless, it is possible, and some specialist lenders provide mortgages exclusively for borrowers with poor credit histories. Here at ams: we continually work with these lenders. They are more flexible in their assessment, considering other factors like income and employment history, rather than just focusing on credit scores. So, why not speak to one of our specialised bad credit and CIS contractor mortgage advisors and let them identify the best mortgage options that suit your circumstances?

Yes, building contractors can get a mortgage for a buy to let property, provided they meet the lender's eligibility criteria. The deposit required for a buy to let mortgage is generally higher than that for a residential mortgage, typically around 25% of the property's value. Why not visit our buy to let mortgage page for further information? Also, speak to an ams: specialist mortgage broker to find the best mortgage options available for your circumstances.

A building contractor mortgage is tailored to those who work in the construction industry, while a regular self-employed mortgage is offered to a range of self-employed individuals. Building contractor mortgages consider the unique financial circumstances of contractors, including variable income and project lengths, and consider their specific needs when assessing affordability and risk. On the other hand, regular self-employed mortgages may have different requirements and criteria.

Our mortgage brokers may feel that a self-employed mortgage is more suited to your circumstances, in which case we can proceed down that route. Please visit our self-employed mortgages page for additional information. You can also speak to an ams: specialist mortgage broker who will recommend the most suitable mortgage option for your situation.

If we can’t help, it’s not possible.