4 Steps to getting a bigger mortgage from your CIS Income

Four steps to getting a bigger mortgage from your cis Subcontractor income

Hi David here. I've written this post to help you understand the steps I go through with our CIS clients to help them buy a dream home. 

My job as a CIS mortgage specialist is to fully understand your income and any variations that occur, albeit because you're on price work, day rate, or hourly rate. Once we've gathered all the information we can build a compelling case to present to the lender's decision maker about why you are a really suitable candidate to borrow a huge sum of money based purely on gross income and disregard your smaller net profits. 

 Strategy call. 

It all starts from our first conversation... Normally on your lunch break. A 15 minute chat to find out what mortgage you might need to achieve and to get a rough idea of your income, expenditure, family set and to talk through any concerns you might have. By the end of this chat you'll be surprised how much I estimate you can borrow. 

 Assessment and. Research. 

Following our chat, the next stage is to email me some documents to demonstrate your level of earnings and we also ask for a full credit report. This is really important to see early on. It's vital to help us spot any credit issues that could arise and help to manage these issues. Forearmed is definitely forewarned. I'll assess your income over the average of 3 months, 6 months and 12 months to make sure I cover the calculations for all the lenders and then report back with the right fit. 

I'll assess your income over the average of 3 months, 6 months and 12 months

A massively important part of the mortgage planning process is to complete a fact find and income and expenditure analysis. Far from a box ticking exercise, this will help me find out all of your wants, wishes and hopes for the future for your home, career and family. Just as important as knowing the cost of your sky sports subscription is for me to know that you love taking Granny Salsa dancing on a Sunday, or you're saving hard for children's University fund. In my opinion there's little point in struggling to afford being homeowner each month if the fun things in life are sacrificed. So I’ll help you plan your budget accordingly to help make sure the home you choose is affordable and show you how to not be forced out from it if the worst case happens

I’ll help you plan your budget accordingly to help make sure the home you choose is affordable

 Dip your feet to test the water. 

It’s one thing for me to estimate how much you can borrow on a mortgage using your gross CIS Income, but until I present your case to a mortgage lender, then it's entirely academic. You need to have the confidence that when you place an offer on your dream home, the mortgage is provisionally approved. This stage is called Agreement in Principle, it's not a full application, but it's like dipping your toes in the water and hopefully it's warm. It will involve a credit check with a lender and provide a green light to apply for the mortgage. 

 Make the application. 

Once you have an offer accepted on a property and I've explained all about the finer details of the mortgage, then the hard work really begins. 

 A successful mortgage application will be when I have satisfied the lender's Underwriter or decision maker that although you do complete a self assessment you're really nothing like normal self employed. I'll demonstrate your income is solid and consistent. Explain any variation from week to week, show you pay weekly tax of 20% deducted from your salary and pretty much present you as if you are in a fully employed, full time job. And this is why the lender should use your average gross CIS Income instead of your net profit after expenses. 

the lender should use your average gross CIS Income instead of your net profit after expenses. 

 As long as the mortgage application is successful, then typically within 1 to 2 weeks of making the application, I'll be able to deliver the fantastic news that your mortgage has been fully approved 

If you have any questions about my process or would like to learn how you can get a Bigger mortgage with your CIS Subcontractor income then please get in touch.

Bye for now 

David Sharpstone 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE