---
title: "CIS Mortgages, Construction Industry Scheme"
description: "How lenders assess CIS subcontractors for a mortgage: time in CIS, months of evidence, gross or net income, and limited company, partnership and gross payment status cases."
url: "https://mortgagelane.com/mortgages/cis-mortgages"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-09-11"
author: "Joseph Lane"
category: "Mortgages"
reviewed: "2026-10-08"
reading_time: "30 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# CIS Mortgages, Construction Industry Scheme

How lenders assess CIS subcontractors for a mortgage: time in CIS, months of evidence, gross or net income, and limited company, partnership and gross payment status cases.

CIS mortgages for Construction Industry Scheme subcontractors: how lenders read CIS income, time in CIS versus months of evidence, and company, partnership and gross-paid cases.

[CIS mortgage](https://mortgagelane.com/definitions?term=cis-mortgage)

Specialist lending

A residential mortgage for a subcontractor paid under the Construction Industry Scheme, assessed under the lender's own rules for CIS income, evidence and time in the trade.

[Read the full definition of CIS mortgage](https://mortgagelane.com/definitions?term=cis-mortgage)

## Expert advice on CIS Mortgages, Construction Industry Scheme

Speak to a Mortgage Lane adviser about your options.

## In short

A CIS mortgage is a residential mortgage for a construction subcontractor paid under the Construction Industry Scheme. Lenders differ on how long you must have worked under CIS, how many months of payslips, statements or tax records they read, and whether they use gross earnings, earnings less materials or expenses, or self-employed net profit.

## What is a CIS mortgage?

Under the Construction Industry Scheme, contractors deduct tax at source from the labour part of a subcontractor's payments (not VAT or the cost of materials), 20% for registered subcontractors and 30% for unregistered, and pay it to [HM Revenue and Customs (HMRC)](https://mortgagelane.com/definitions#def-hm-revenue-and-customs). Subcontractors with gross payment status are paid without deduction ([gov.uk: make deductions and pay subcontractors](https://www.gov.uk/what-you-must-do-as-a-cis-contractor/make-deductions-and-pay-subcontractors)). The deductions count as advance payments towards the subcontractor's tax and National Insurance: sole traders and partners account for them on their Self Assessment return, and a limited company subcontractor offsets them through its payroll submissions to HMRC ([gov.uk: pay tax and claim back deductions](https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/pay-tax-and-claim-back-deductions)).

Lenders described as CIS friendly are lenders with published CIS rules, and those rules differ: some average and annualise recent CIS payslips or statements, some deduct materials or expenses, and some assess CIS workers as self-employed on tax calculations or accounts. The evidence a lender reads also varies, from three months of payslips at some lenders to two years of statements, tax calculations or accounts at others. The mortgage is a standard regulated residential loan under the Financial Conduct Authority's mortgage conduct rules ([MCOB](https://handbook.fca.org.uk/handbook/mcob)), with the income assessment made under the lender's own rules for CIS income.

## CIS mortgage rates

Each lender sets its own CIS rate, and the rate depends on the product, the [loan-to-value](https://mortgagelane.com/definitions#def-loan-to-value) (LTV, the loan as a percentage of the property's value) and the credit profile. Some lenders place CIS applicants in specific products, each priced and limited by that lender, such as Principality's CIS 6 Month product or Earl Shilton's CIS mortgage (published criteria checked 29 September 2026; see CIS mortgage lenders below). Other lenders apply their CIS rules to their standard residential products. Either way, the products open to a subcontractor depend on which lender's CIS rules fit. Where [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit) narrows the choice of lenders, pricing can reflect the credit. An adviser compares the lenders whose rules fit on rate, fees and term, and on their rules on time in CIS, evidence and the income figure used.

**Working under CIS and buying or remortgaging?** Get in touch with your recent CIS payslips or statements, bank statements and latest tax calculation. The lender's method and the evidence you hold decide which lenders fit and the income figure they use.

## CIS mortgage criteria

**Two separate questions shape a CIS case: how long you have worked under CIS or in construction, and how many months of evidence the lender reads.** A lender can set a minimum for both, and meeting one does not meet the other. A third question, which figure the lender takes from that evidence, decides the income. The examples below come from each lender's own published criteria, checked 29 September 2026. Principality and West Bromwich Building Society say in their published criteria that they lend only on property in England and Wales. Tipton's criteria refer to property across England, Wales and the Isle of Wight, and Earl Shilton's to purchases and remortgages in England or Wales, so none of these four lenders' published rules covers a purchase in Scotland or Northern Ireland.

### Time in CIS or in the trade

- [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/): at least 3 months subcontracting through the business, at least 12 months' experience in a similar industry, and no fixed end date on the current contract.
- [Principality](https://www.principality.co.uk/intermediaries/self-employed-clients), for its CIS 6 Month product: at least 6 months' continuous CIS work with no more than 6 weeks between contracts, 12 months' experience in a similar industry, and a contract with at least 1 month left or written confirmation of renewal.
- [Aldermore](https://www.aldermore.co.uk/intermediaries/mortgages/residential-owner-occupied/self-employed-and-contractors/): 12 months on CIS, or 24 months' relevant experience for someone new to CIS.
- West Bromwich Building Society (policy dated August 2026): a two-year track record of subcontracting under CIS.

### Length of evidence

- [Halifax](https://www.halifax-intermediaries.co.uk/criteria.html): the latest 3 consecutive months' income evidence with matching bank statements, averaged and annualised over a 46-week year.
- Principality: 6 months' CIS payslips and the latest 3 months' bank statements, averaged over 48 weeks.
- [Skipton](https://www.skipton-intermediaries.co.uk/criteria/a-z-lending-criteria/a-z-lending-criteria-residential): a 1-year payment summary, the latest SA302 tax calculation, or the latest 12 months' invoices or payslips with a monthly summary of gross, materials, tax and net, each with 1 month's bank statement. It does not accept 12 months of weekly remittance slips.
- West Bromwich: the lower of the latest finalised year or the average of the last two years' turnover or income, with CIS vouchers among the listed evidence and the latest 3 months' business bank statements.

### Which figure the lender uses

- Tipton: recent total gross earnings, annualised over 48 working weeks. Its residential criteria page reads the last 3 months and its separate [employment types page](https://www.thetipton.co.uk/intermediaries/mortgages-for-all-types-of-employed-and-self-employed/) 6 months, so the period that applies to a case is for Tipton to confirm.
- Skipton: a 12-month gross average minus materials, or the annual net profit from the SA302.
- [Earl Shilton](https://www.esbs.co.uk/cis-mortgages/), for CIS workers it does not class as self-employed: gross income worked out from the hourly or daily rate over 46 weeks for [income multiples](https://mortgagelane.com/definitions#def-loan-to-income), and net income averaged over the last six months' payslips for affordability ([lending criteria guide dated April 2026](https://cdn.esbs.co.uk/wp-content/uploads/2026/04/23153539/Lending-Criteria-Grid-for-esbs-April_2026.pdf)).
- [Darlington](https://www.darlington.co.uk/wp-content/uploads/2026/09/V3.41-A-to-Z-Criteria-4-September-2026-For-Website.pdf) (manual dated 4 September 2026) classes CIS subcontractors as self-employed, with 2 years' history. Principality's [self-employed criteria](https://www.principality.co.uk/intermediaries/our-mortgage-lending-criteria/self-employed) also treat CIS contractors as self-employed, on 1 year's SA302 and net profit, alongside its separate CIS product.

*These are examples of individual lenders' published rules, which can change at any time. They are not a list of Mortgage Lane's panel, they do not mean a product is available through us, and they are not a decision on any application. The table summarises how the criteria vary.*

## CIS mortgage criteria

*CIS mortgage criteria*

| Criterion | How it varies |
| --- | --- |
| Income basis | Varies by lender: gross earnings annualised, a gross average less materials or expenses, gross for the income multiple with net pay for affordability, or self-employed net profit from tax calculations or accounts. No single basis applies across lenders. |
| Length of evidence | Varies by lender: from 3 months of payslips or income evidence at some lenders to 2 years of figures from tax calculations, accounts, statements or tax year overviews at others, in the published criteria we rechecked on 29 September 2026. This is a separate test from time in CIS. |
| Time in CIS | Varies by lender: some consider 3 to 6 months under CIS with at least a year's experience in a similar industry, one checked lender considers someone new to CIS with 24 months' relevant experience, and others want two years under CIS. |
| Registration | Deduction rates are HMRC rules: 20% for registered subcontractors, 30% for unregistered. Whether a lender considers an unregistered subcontractor, and on which route, is a lender check. |
| Gross payment status | Paid without deduction, so deduction statements may not exist. A lender may ask for tax calculations, accounts, invoices or bank statements instead; the published lender criteria checked set no specific rule for it, and invoiced or gross receipts are not automatically the income figure a lender uses. |
| Structure | Sole traders are assessed under the lender's CIS or self-employed route. Limited company subcontractors and partnerships may be considered, with the evidence and income figure depending on the lender: for example, one checked lender counts CIS income paid to a limited company only where the applicant is its sole director and sole beneficiary, while others apply their self-employed or company rules. |
| Deposit and LTV | Depends on the lender, product and route. Some lenders publish CIS-specific limits, such as a 75% maximum or a CIS product up to 90%. Separately, in Mortgage Lane's experience the lenders we use have assessed CIS cases on their standard residential loan-to-value bands, up to 95%, without a separate CIS limit. That is our experience, not a market rule; whether a product at a given loan-to-value fits depends on the lender, the product, affordability and credit. |
| Evidence | Depending on the lender: CIS payslips or payment and deduction statements, invoices with a monthly summary, bank statements showing receipts, Unique Taxpayer Reference (UTR) and CIS registration, SA302 tax calculations and tax year overviews, an accountant's certificate, contracts, and company or partnership accounts where relevant. |
| Credit | Lenders apply their own credit scoring and credit policy. Adverse credit narrows the choice of lenders, sometimes to specialist lenders, and pricing can reflect the credit position; the severity and age of the credit events affect which lenders may consider a case. |
| Buy to let | Assessed mainly on the expected rent against the mortgage interest (an interest cover ratio test). Some lenders also use personal income to top up a rental shortfall (top slicing); whether CIS income counts for that, and on which basis, depends on the lender. |

Summary of how published lender criteria vary, checked 29 September 2026. Individual lenders' rules change and are not a decision on any application; a lender confirms how it assesses a particular case.

## Types of CIS subcontractor, and how each is assessed

**A subcontractor's structure and tax position decide which evidence a lender reads and which of its routes applies.** Named lenders below are examples from published criteria checked 29 September 2026.

### Sole-trader CIS subcontractors

This is a self-employed tradesperson registered for CIS, paid by contractors after the 20% deduction, who accounts for tax through Self Assessment. Lenders differ on whether they treat this person like an employee or as self-employed, and some read CIS payslips much as they would an employee's payslips. Halifax, for example, says CIS contractors are generally treated as employed where tax is deducted at source, but should be treated as self-employed where they are responsible for all of their own tax (its criteria note that usually 20% is deducted at source) or have contracts with more than one company and need income from both for affordability. How a registered subcontractor is classified, and which evidence route follows, is a point to confirm with the lender. A lender on an employed-style route reads recent payslips or statements; a lender on a self-employed route reads [SA302 tax calculations and tax year overviews](https://mortgagelane.com/mortgages/sole-trader-mortgages), or accounts.

**Get in touch** with your CIS payslips, bank statements and latest tax calculation.

### CIS subcontractors trading through a limited company

A limited company can be a CIS subcontractor in its own right. It receives payments after deduction and offsets the deductions through its payroll submissions to HMRC rather than a personal Self Assessment return. Of the lender criteria we checked in September 2026, few publish a CIS limited company rule, and those that do differ: Tipton includes CIS income paid to a limited company where the applicant is the sole director and sole beneficiary of the income, while Darlington says CIS limited company contractors follow its self-employed criteria. The lender's policy sets whether it reads the company's gross CIS receipts or figures from the company's accounts and the director's remuneration; the applicant cannot simply choose the route that gives the higher figure.

**Get in touch** with the company's CIS statements and accounts.

### CIS subcontractors in a partnership

HMRC's scheme covers partnerships as well as sole traders and companies ([CIS 340 guide](https://www.gov.uk/government/publications/construction-industry-scheme-cis-340/construction-industry-scheme-a-guide-for-contractors-and-subcontractors-cis-340)). Few of the lender criteria we checked mention partnerships in a CIS context. [HSBC UK](https://intermediaries.hsbc.co.uk/packaging-requirements/)'s packaging requirements, for example, treat subcontractors, including CIS contractors, who pay their own tax as self-employed, with evidence following its sole trader or partnership requirements, or its limited company requirements. How a lender works out your share of the partnership income, and over how many years, is a lender check.

**Get in touch** with the partnership's tax calculations or accounts.

### Gross payment status subcontractors

HMRC grants gross payment status. Contractors then pay the subcontractor in full with no deduction, and the subcontractor pays all their tax and National Insurance at the end of the tax year. To qualify, the business must meet HMRC's tests, including paying tax on time and a turnover, excluding VAT and materials, of at least £30,000 for a sole trader, with separate tests for partnerships and companies ([gov.uk gross payment status](https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/gross-payment-status)). A contractor paying gross does not have to issue a payment and deduction statement, so a gross-paid subcontractor may hold no CIS statements for a statement-based route.

None of the published lender criteria read in our September 2026 research sets out a rule or category specifically for gross payment status. A lender may instead want the tax position evidenced by tax calculations, tax year overviews, accounts, invoices or bank statements, and it decides whether it reads invoiced receipts, receipts less materials or declared net profit. Skipton's invoice and SA302 routes, for example, show that some lenders accept evidence other than deduction statements. They do not show that a gross-paid case qualifies for a CIS route, or that invoiced receipts will be taken as income. A tax calculation shows profit after allowable business expenses rather than invoiced receipts, and the figure a lender takes from tax calculations or accounts depends on its own rules: the SA302 net profit at Skipton, for example, or turnover or income at West Bromwich.

**Get in touch** with your tax calculations, invoices and bank statements.

### Newly registered and short-history subcontractors

For someone newly registered, or [newly self-employed](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) after employed work in construction, time in CIS and length of evidence are separate questions. As the examples under CIS mortgage criteria show, some lenders consider 3 to 6 months under CIS where there is at least a year of experience in a similar industry, one checked lender considers someone new to CIS with 24 months' relevant experience, and others want two years under CIS. Whether a short statement history is enough depends on the lender's rules, including the minimum months of evidence it reads and whether it counts earlier employed work in construction.

**Get in touch** with your statements to date and your employment history.

### CIS subcontractors with adverse credit

Adverse credit narrows the choice of lenders. [Missed payments](https://mortgagelane.com/mortgages/mortgages-with-missed-payments), defaults or county court judgments can limit a case to specialist lenders whose criteria cover both CIS income and credit-impaired applicants, and whose pricing reflects the credit position, while a larger deposit widens the choice in some cases. Our [declined mortgages](https://mortgagelane.com/insights/declined-mortgages) page covers the recovery sequence.

**Get in touch** with your credit report and CIS statements.

### CIS subcontractors buying to let

Buy to let lending is rental led: lenders assess affordability mainly on the expected rent, usually by testing it against the mortgage interest (an [interest cover ratio](https://mortgagelane.com/definitions#def-interest-coverage-ratio) test). Some also use personal income to make up the shortfall where the rent alone fails coverage, which is called [top slicing](https://mortgagelane.com/definitions#def-top-slicing) and which the Prudential Regulation Authority's [buy to let underwriting standards](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss) allow. A CIS-friendly buy to let lender is one whose criteria count CIS income for top slicing; whether it uses gross, net or self-employed figures also depends on those criteria. The mechanics are in the [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide).

**Get in touch** for a buy to let purchase as a CIS subcontractor.

### Other contractors and the self-employed in construction

Contractors who engage subcontractors, tradespeople outside the scheme, and construction professionals on day rates are usually assessed under a lender's contractor or [self-employed rules](https://mortgagelane.com/mortgages/self-employed-mortgages) rather than a CIS route: see [contractor mortgages](https://mortgagelane.com/mortgages/contractor-mortgages).

**Get in touch** if you are unsure which assessment applies.

Gross payment status requires, among HMRC's tests, a sole trader turnover of at least £30,000 excluding VAT and materials. A contractor paying gross need not issue deduction statements, so a lender may read tax calculations, accounts or invoices instead.

## CIS mortgage lenders

**CIS mortgage lenders are lenders with published rules for Construction Industry Scheme income, and those rules differ on time in CIS, months of evidence, the income figure used, company and partnership cases, and loan-to-value limits.** Some high street banks, building societies and specialist lenders publish CIS criteria, and they underwrite CIS income in different ways: some through a dedicated CIS route, others through their self-employed rules. Because the rules differ, one lender may be able to consider a case another declines, and the same earnings can produce different income figures at different lenders.

Some lenders set CIS-specific limits. Earl Shilton's CIS mortgage page states a maximum loan of £600,000 and a maximum 75% LTV, and Principality's CIS 6 Month product goes up to 90% LTV. Principality says its mortgages are only available on property in England and Wales, and Earl Shilton's CIS page refers to purchases and remortgages in England or Wales (published criteria checked 29 September 2026).

**Our experience:** separately from those published examples, the lenders Mortgage Lane uses have assessed CIS cases on their standard residential loan-to-value bands, up to 95%, without a separate CIS limit. That is the firm's working experience, not a market rule, and whether a product at a given loan-to-value fits a case depends on the lender, the product, affordability and credit.

The "CIS mortgage company" a subcontractor is looking for is usually a lender with a CIS policy. Because the rules are published lender by lender, not as a single list, some subcontractors use a broker to check which lenders' current rules fit before applying; some lenders also take applications directly.

## How a CIS mortgage is arranged

1. **Structure and evidence.** Sole trader, limited company, partnership or gross payment status; how long you have worked under CIS and in the trade; the CIS payslips, statements or invoices you hold, with bank statements showing the receipts; UTR (Unique Taxpayer Reference) and CIS registration; SA302 tax calculations and tax year overviews, or accounts, where available; and earlier employment where the history is short.
2. **Income figure and lender match.** The income worked out under each candidate lender's method (its evidence period, its annualisation, and whether it uses gross earnings, earnings less materials or expenses, or net profit), set against the loan required. The lender is chosen on its time-in-CIS, evidence, structure and loan-to-value rules.
3. **Agreement in principle and full application.** An [agreement in principle](https://mortgagelane.com/definitions#def-agreement-in-principle) (the lender's initial indication) on the assessed income, then the full application with the statement pack and other evidence, and the lender's valuation.
4. **Offer and completion.** The mortgage offer, legal work and completion.

## The CIS arithmetic: gross versus net

**The same CIS earnings can produce different income figures, depending on the lender's evidence period, how it annualises, and whether it uses gross earnings, the amount received after the deduction, or net profit.**

An illustrative sole-trader subcontractor is paid £1,000 a week for labour only (no materials) in each of the last 13 weeks, with the 20% registered-rate deduction: £13,000 gross, £2,600 deducted and £10,400 received, or £800 a week. Their illustrative Self Assessment tax calculation shows a net profit, after allowable business expenses, of £30,000.

*Illustrative arithmetic on hypothetical figures. 5 times income is the standard multiple in Mortgage Lane's experience, up to 6 for professionals and specialist products; it is not a product term or a lender limit, and each lender's affordability assessment decides the actual figure. Not an offer of finance.*

On these assumptions the gross reading over 48 weeks gives £48,000 and the lowest reading £30,000, so the illustrative loan at 5 times runs from £240,000 to £150,000. The first three rows read the same 13 weeks of statements in different ways; the last row uses the assumed Self Assessment profit instead, and none of the rows is any named lender's calculation. The week counts are ones some lenders publish: Tipton annualises gross earnings over 48 weeks and Earl Shilton works out gross income over 46 weeks, while Principality (48 weeks) and Halifax (46 weeks) do not say whether their average is gross or net.

## The CIS arithmetic: gross versus net

*The CIS arithmetic: gross versus net*

| Reading | Calculation | Income figure | Illustrative loan at 5 times income |
| --- | --- | --- | --- |
| Gross earnings, weekly average annualised over 48 weeks | £1,000 × 48 | £48,000 | £240,000 |
| Gross earnings, weekly average annualised over 46 weeks | £1,000 × 46 | £46,000 | £230,000 |
| Amount received after the 20% deduction, annualised over 48 weeks | £800 × 48 | £38,400 | £192,000 |
| Self-employed net profit from the tax calculation | Assumed figure after allowable expenses | £30,000 | £150,000 |

Illustrative arithmetic on the hypothetical figures above (labour only, £1,000 gross a week, the 20% registered-rate deduction, an assumed net profit of £30,000). 5 times income is the standard multiple in Mortgage Lane's experience, not a lender limit, and each lender's affordability assessment decides the actual figure. Not an offer of finance.

If the statements included materials, the gross statement figure would include them too, and a lender that deducts materials would start from a lower figure. Net profit is after business expenses, not after the CIS deduction, so for a real subcontractor it can be higher or lower than the amount received.

Around the number, the lender checks time in CIS and in the trade, the length and consistency of the statement history, gross payment status or the deduction rate, gaps between contracts, the structure (sole trader, company or partnership) and whether its product and loan-to-value limits fit. Some of these change the figure itself, as well as whether the lender uses it.

With gross payment status no deduction is made, so there may be no deduction statements to read, and the lender decides whether it reads invoiced receipts, receipts less materials, or net profit from tax calculations or accounts.

**Related reading:** the parent [contractor mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) page covers day-rate and umbrella contractors; the [first-time buyer mortgage guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) covers the schemes and tax reliefs open to first-time buyers, which are not specific to subcontractors.

## Related topics

- [2026](https://mortgagelane.com/mortgages/it-contractor-mortgages)Mortgage[IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages)IT contractor mortgages: how lenders read day rates, umbrella and limited company pay, IR35, first contracts, renewals, gaps and overseas clients.[Read more about IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages)
- [2026](https://mortgagelane.com/mortgages/contractor-mortgages)Mortgage[Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages)Contractor mortgages where the lender can assess your contract instead of two years of accounts: day-rate annualisation, umbrella pay and IR35, and how contractor-friendly lenders differ.[Read more about Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages)
- [2026](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)Guide[The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)The complete first-time buyer guide: deposits, 95% and 100% mortgages, JBSP and gifted deposits, concessionary purchases, Shared Ownership, First Homes, Right to Buy and every devolved scheme.[Read more about The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)

## CIS mortgage calculator

Add up the gross pay on your CIS statements and enter the weeks they cover. Lenders annualise over 46 or 48 weeks in their published criteria, and the deduction is 20% registered, 30% unregistered or nil with gross payment status. The calculator shows how the same earnings read gross and after the deduction. Starting figures are an illustration.

Explore your borrowing

Start again

Enter your figures in pounds. Your estimate updates as you go.

Indicative maximum loan

\-

Enter your figures to see an estimate.

Loan to value

[Discuss your options](https://mortgagelane.com/contact)

Indicative estimate only, subject to lender criteria, affordability and valuation. Lenders read CIS income in different ways. This is not a mortgage offer. Your home may be repossessed if you do not keep up repayments on your mortgage.

## Frequently asked questions about CIS mortgages and the Construction Industry Scheme

**Q: What is a CIS mortgage?**

faq-id: what-is-a-cis-mortgage

A CIS mortgage is a residential mortgage for a construction subcontractor paid under the Construction Industry Scheme, assessed under the lender's own rules for CIS income. Lenders read income earned under the scheme, evidenced by CIS payslips, statements, tax calculations or accounts, and they differ on how long you must have worked under CIS, how many months of evidence they read, and whether they use gross earnings, earnings less materials or expenses, or self-employed net profit. The mortgage itself is a standard regulated residential loan.

**Q: What is the Construction Industry Scheme?**

faq-id: what-is-the-construction-industry-scheme

The Construction Industry Scheme is HM Revenue and Customs' system under which contractors deduct tax at source from payments to subcontractors and pay it to HMRC: 20% for registered subcontractors and 30% for unregistered. The deductions count as advance payments towards the subcontractor's tax and National Insurance. A limited company subcontractor offsets them through its payroll submissions to HMRC, while sole traders and partners account for them through Self Assessment. Subcontractors with gross payment status are paid without deduction.

**Q: How much can a CIS subcontractor borrow?**

faq-id: how-much-can-a-cis-subcontractor-borrow

How much a CIS subcontractor can borrow depends on the income CIS lenders take from the evidence and on each lender's affordability assessment. Lenders differ on the evidence period, how they annualise (for example over 46 or 48 weeks) and whether they use gross earnings, earnings less materials or expenses, or self-employed net profit, so the same work can produce different income figures at different lenders. As an illustration only, £1,000 a week of labour-only CIS earnings annualised over 48 weeks is £48,000, which at 5 times income, the standard multiple in Mortgage Lane's experience, is £240,000; the £800 a week left after the 20% deduction, annualised the same way, is £38,400, or £192,000. A lender using self-employed net profit works from the tax calculation instead, which can be higher or lower than the amount received. These figures are arithmetic on hypothetical assumptions, not an offer or any lender's calculation, and each lender's affordability assessment decides the actual amount.

**Q: Do I need two years of accounts for a CIS mortgage?**

faq-id: do-i-need-two-years-of-accounts-for-a-cis-mortgage

You do not always need two years of self-employed accounts for a CIS mortgage; it depends on the lender. Some lenders assess recent CIS evidence: [Halifax](https://www.halifax-intermediaries.co.uk/criteria.html), for example, reads the latest 3 consecutive months with matching bank statements, although it treats a CIS contractor who is responsible for all of their own tax as self-employed, so which of its routes applies is a lender check. [Principality](https://www.principality.co.uk/intermediaries/self-employed-clients)'s CIS 6 Month product reads 6 months' CIS payslips. Others want longer: West Bromwich Building Society asks for a two-year track record under CIS, and [Darlington](https://www.darlington.co.uk/wp-content/uploads/2026/09/V3.41-A-to-Z-Criteria-4-September-2026-For-Website.pdf) assesses CIS subcontractors under its self-employed criteria with 2 years' history. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: Do CIS lenders use gross or net income?**

faq-id: do-cis-lenders-use-gross-or-net-income

It depends on the lender. [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/) annualises recent gross earnings over 48 working weeks (its published pages give 3 and 6 months as the period). [Skipton](https://www.skipton-intermediaries.co.uk/criteria/a-z-lending-criteria/a-z-lending-criteria-residential) uses a 12-month gross average minus materials, or the net profit from the SA302. [Earl Shilton](https://www.esbs.co.uk/cis-mortgages/), for CIS workers it does not class as self-employed, uses gross income for income multiples and net income averaged over six months' payslips for affordability ([lending criteria guide dated April 2026](https://cdn.esbs.co.uk/wp-content/uploads/2026/04/23153539/Lending-Criteria-Grid-for-esbs-April_2026.pdf)). Lenders that assess CIS workers as self-employed, such as Darlington, follow their self-employed rules. As an illustration, £1,000 a week of labour-only earnings (no materials), annualised over 48 weeks, is £48,000; a lender that reads net receipts, the £800 a week received after the 20% deduction, annualised the same way, starts from £38,400. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: How many months of CIS statements do I need?**

faq-id: how-many-months-of-cis-statements-do-i-need

The number of months varies by lender, and it is a separate question from how long you have worked under CIS. Published routes include 3 months ([Halifax](https://www.halifax-intermediaries.co.uk/criteria.html)), 6 months ([Principality](https://www.principality.co.uk/intermediaries/self-employed-clients)'s CIS product), 12 months ([Skipton](https://www.skipton-intermediaries.co.uk/criteria/a-z-lending-criteria/a-z-lending-criteria-residential), which also accepts invoices with a monthly summary or the latest SA302) and two years of figures at lenders such as West Bromwich. Halifax, Principality and Skipton also ask for bank statements. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: How long do I need to have worked under CIS to get a mortgage?**

faq-id: how-long-do-i-need-to-have-worked-under-cis-to-get-a-mortgage

It depends on the lender, and it is a different test from how many months of payslips or statements the lender reads. [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/) asks for at least 3 months subcontracting with 12 months' experience in a similar industry. [Principality](https://www.principality.co.uk/intermediaries/self-employed-clients)'s CIS product asks for 6 months' continuous CIS work with no more than 6 weeks between contracts and 12 months' experience in a similar industry. [Aldermore](https://www.aldermore.co.uk/intermediaries/mortgages/residential-owner-occupied/self-employed-and-contractors/) asks for 12 months on CIS, or 24 months' relevant experience if you are new to CIS, and West Bromwich Building Society asks for a two-year track record under CIS. Whether earlier employed work in construction counts is a lender check. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: Can a newly registered CIS subcontractor get a mortgage?**

faq-id: can-a-newly-registered-cis-subcontractor-get-a-mortgage

A newly registered CIS subcontractor may be able to get a mortgage, depending on the lender's time-in-CIS rule and whether earlier experience counts. [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/) considers at least 3 months subcontracting with 12 months' experience in a similar industry, and [Aldermore](https://www.aldermore.co.uk/intermediaries/mortgages/residential-owner-occupied/self-employed-and-contractors/) considers someone new to CIS with 24 months' relevant experience, while West Bromwich Building Society wants a two-year track record under CIS. Separately, the lender sets how many months of payslips or statements it reads. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: Can a CIS subcontractor with a limited company get a CIS mortgage?**

faq-id: can-a-cis-subcontractor-with-a-limited-company-get-a-cis-mortgage

A CIS subcontractor trading through a limited company may be considered, but few of the lender criteria we checked in September 2026 publish a CIS limited company rule, and those that do differ. [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/) includes CIS income paid to a limited company where the applicant is the sole director and sole beneficiary of the income. [Darlington](https://www.darlington.co.uk/wp-content/uploads/2026/09/V3.41-A-to-Z-Criteria-4-September-2026-For-Website.pdf) says CIS limited company contractors follow its self-employed criteria, and [HSBC UK](https://intermediaries.hsbc.co.uk/packaging-requirements/) treats contractors who pay their own tax as self-employed and applies its limited company evidence requirements. The lender's policy sets whether it reads CIS income paid to the company or figures from the company's accounts. A limited company offsets its CIS deductions through its payroll submissions to HMRC rather than a Self Assessment return. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: Can a CIS subcontractor in a partnership get a mortgage?**

faq-id: can-a-cis-subcontractor-in-a-partnership-get-a-mortgage

A CIS subcontractor in a partnership may be considered. HMRC's scheme covers partnerships as well as sole traders and companies, but few of the lender criteria we checked in September 2026 mention partnerships in a CIS context. [HSBC UK](https://intermediaries.hsbc.co.uk/packaging-requirements/)'s packaging requirements, for example, say subcontractors, including CIS contractors, who pay their own tax are treated as self-employed, with evidence following its sole trader or partnership requirements. How the lender works out your share of the partnership income, and over how many years, depends on the lender. HSBC UK's requirements were checked on 29 September 2026; lender rules change, and this is one lender's example, not Mortgage Lane's panel or a decision on any case.

**Q: What is gross payment status and how does it affect a mortgage?**

faq-id: what-is-gross-payment-status-and-how-does-it-affect-a-mortgage

Gross payment status is an HMRC status that lets a subcontractor be paid in full, without CIS deductions, and pay all their tax and National Insurance at the end of the tax year. To qualify, the business must meet HMRC's tests, including paying tax on time and a turnover, excluding VAT and materials, of at least £30,000 for a sole trader, with separate tests for partnerships and companies ([gov.uk gross payment status](https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/gross-payment-status)). None of the published lender criteria read in our September 2026 research sets out a rule specifically for gross payment status. Because no deduction is made, the contractor does not have to issue a deduction statement, so a lender may ask for tax calculations, accounts, invoices or bank statements instead, and it decides whether it uses invoiced receipts, receipts less materials or net profit. Invoiced receipts are not automatically the income a lender uses: some lenders deduct materials or expenses, and lenders that assess on tax calculations or accounts use the profit or income figure their own criteria set.

**Q: What evidence do I need for a CIS mortgage?**

faq-id: what-evidence-do-i-need-for-a-cis-mortgage

The evidence depends on the lender's route. A CIS case may draw on CIS payslips or payment and deduction statements for the lender's period, or invoices with a monthly summary where the lender accepts them; bank statements showing the receipts; the subcontractor's Unique Taxpayer Reference (UTR) and CIS registration; SA302 tax calculations and tax year overviews, or an accountant's certificate where the lender accepts one; contracts or confirmation that work is continuing; and company accounts where a company trades, or partnership accounts. The lender decides which figure it takes from the pack: gross earnings, earnings less materials or expenses, or net profit.

**Q: Are CIS mortgage rates higher?**

faq-id: are-cis-mortgage-rates-higher

The rate depends on the lender, the product, the loan-to-value and your credit profile. Some lenders place CIS applicants in specific products with their own limits, such as [Principality](https://www.principality.co.uk/intermediaries/self-employed-clients)'s CIS 6 Month product at up to 90% LTV or [Earl Shilton](https://www.esbs.co.uk/cis-mortgages/)'s CIS mortgage at up to 75% LTV, so the products open to you depend on which lender's rules fit. Principality lends only on property in England and Wales, and Earl Shilton's CIS page refers to purchases and remortgages in England or Wales. Where credit problems narrow the choice of lenders, pricing can reflect the credit position. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case.

**Q: Which lenders offer CIS mortgages?**

faq-id: which-lenders-offer-cis-mortgages

Some high street banks, building societies and specialist lenders publish CIS criteria, each with its own rules. Examples include [Halifax](https://www.halifax-intermediaries.co.uk/criteria.html) (latest 3 months' evidence, annualised over 46 weeks), [Principality](https://www.principality.co.uk/intermediaries/self-employed-clients) (a CIS 6 Month product), [Skipton](https://www.skipton-intermediaries.co.uk/criteria/a-z-lending-criteria/a-z-lending-criteria-residential) (12 months' evidence or the latest SA302), [Tipton](https://www.thetipton.co.uk/intermediaries/criteria-and-information/lending-criteria/residential-lending-criteria/) (recent gross earnings annualised over 48 weeks; its published pages give 3 and 6 months as the period) and West Bromwich Building Society (a two-year CIS track record). Principality and West Bromwich say they lend only on property in England and Wales, and Tipton's criteria refer to property across England, Wales and the Isle of Wight. Published criteria checked 29 September 2026; lender rules change and are examples, not Mortgage Lane's panel or a decision on any case. Because the rules are published lender by lender, it helps to check which current policy fits before applying.

**Q: What is a CIS mortgage company?**

faq-id: what-is-a-cis-mortgage-company

A CIS mortgage company, as the term is searched, is usually a lender with a policy for Construction Industry Scheme subcontractors, or a broker that places CIS cases with such lenders. Lenders' CIS policies differ: some annualise recent payslips or statements, some deduct materials or expenses, and some assess CIS workers as self-employed on tax calculations or accounts. A broker matches the subcontractor's statements, structure, history and credit to the lender whose current rules fit.

**Q: What is a CIS mortgage calculator?**

faq-id: what-is-a-cis-mortgage-calculator

Our CIS mortgage calculator starts from the total gross pay on your CIS statements and the number of weeks they cover, and annualises it over the weeks a year a lender uses: 48 to start, and some lenders use 46. It works out the annual income CIS statements show, both gross and after the CIS deduction (20% registered, 30% unregistered, nil with gross payment status). It then takes off your monthly credit commitments, multiplies what is left by the income multiple (5 as standard in Mortgage Lane's experience, up to 6 for professionals and specialist products) and compares the result with the loan you need, within a 95% loan-to-value ceiling. The result is only a guide: the lender's evidence period, whether it uses gross earnings, earnings less materials or net profit, and its affordability assessment decide what you can borrow.

**Q: Can a CIS subcontractor get a buy to let mortgage?**

faq-id: can-a-cis-subcontractor-get-a-buy-to-let-mortgage

A CIS subcontractor may be able to get a buy to let mortgage. Buy to let lending is rental led: lenders assess affordability mainly on the expected rent, usually by testing it against the mortgage interest (an interest cover ratio test), and some also use personal income to top up a rental shortfall (often called top slicing), which the Prudential Regulation Authority's buy to let underwriting standards allow. Whether CIS income counts for top slicing, and whether the lender uses gross, net or self-employed figures, depends on that lender's buy to let criteria. See the [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide).

**Q: Can a CIS subcontractor with bad credit get a mortgage?**

faq-id: can-a-cis-subcontractor-with-bad-credit-get-a-mortgage

A CIS subcontractor with bad credit may be able to get a mortgage from a lender whose credit policy fits the severity and age of the credit events and whose CIS rules fit the income evidence. Pricing can reflect the credit position, and a larger deposit can widen the choice of lenders. Our [declined mortgages](https://mortgagelane.com/insights/declined-mortgages) page covers the recovery sequence.

**Q: Does the 30% deduction rate affect a CIS mortgage?**

faq-id: does-the-30-deduction-rate-affect-a-cis-mortgage

The 30% rate is HMRC's deduction for a subcontractor who is not registered for CIS. Your CIS status sets the deduction: registered subcontractors have 20% deducted and those with gross payment status have nothing deducted. For a mortgage the effect depends on the lender. A lender that reads the amount received sees a lower figure after a 30% deduction, and lenders do not all use the same route: [Nationwide](https://www.nationwide-intermediary.co.uk/lending-criteria/self-employment-income), for example, treats a subcontractor working as an individual who invoices and has 20% or 30% deducted as self-employed. Whether a lender considers an unregistered subcontractor, and on which basis, is a lender check. Registering for CIS reduces the deduction to 20%. Nationwide's criteria were checked on 29 September 2026; lender rules change, and this is one lender's example, not Mortgage Lane's panel or a decision on any case.

**Q: Can a CIS subcontractor be a first-time buyer with a mortgage?**

faq-id: can-a-cis-subcontractor-be-a-first-time-buyer-with-a-mortgage

A CIS subcontractor can be a first-time buyer; the lender still applies its own rules on time in CIS, months of evidence and which income figure it uses. In England and Northern Ireland, first-time buyer relief from Stamp Duty Land Tax means no tax up to £300,000 and 5% on the portion from £300,001 to £500,000, and the relief cannot be claimed if the price is over £500,000 ([gov.uk SDLT rates](https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)); Scotland and Wales have their own taxes. Lifetime ISA savings and the government bonus can go towards a first home costing £450,000 or less, subject to the scheme conditions ([gov.uk Lifetime ISA](https://www.gov.uk/lifetime-isa)). Whether a small-deposit (high loan-to-value) or family-assisted route is available depends on the lender, the product and affordability.

**Q: Do I need a CIS mortgage broker?**

faq-id: do-i-need-a-cis-mortgage-broker

You do not have to use a broker. Some lenders with CIS criteria take applications directly: [Halifax](https://www.halifax.co.uk/mortgages.html), for example, says customers can apply online or with one of its mortgage advisers. Others currently take new borrowers only through a broker: [Earl Shilton](https://www.esbs.co.uk/cis-mortgages/), for example, says it is temporarily pausing direct mortgage advice for new borrowers, whose advice must come from a mortgage intermediary. A CIS mortgage broker checks which lenders' current published rules fit a subcontractor's time in CIS, evidence, structure and credit position before an application is made. Because lenders differ on months of evidence, the income figure they use and how they treat company, partnership and gross-paid cases, the choice of lender can change both the income figure and whether the case fits its criteria. Lender websites checked 29 September 2026; lenders' arrangements change and these are examples, not Mortgage Lane's panel or a decision on any case.

**Q: How long does a CIS mortgage take to arrange?**

faq-id: how-long-does-a-cis-mortgage-take-to-arrange

A CIS mortgage goes through the same application, valuation and offer stages as a standard purchase mortgage, and how long it takes depends on the lender's underwriting and on how quickly the evidence pack is complete. Choosing a lender whose time-in-CIS, evidence and income rules fit at the outset, and having the payslips or statements, bank statements and tax calculations ready, can help avoid delays from a lender asking for different evidence, although the lender can still ask for more.

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Published: 2026-09-11

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/mortgages/cis-mortgages