It is not unnatural to feel nervous and confused when dealing with mortgage applications. You may even be unaware of the different schemes and mortgage plans that the high street lender or specialized lenders provide. Therefore, you turn to mortgage advisors and try to get the best mortgage and interest rate. They make your purchase easy and reduce the risk of falling into despair over a wrong decision.
You can enquire about CIS mortgages from the mortgage advisors found at Mortgage Experts Online. You can submit your information and query to the site, and they would send it to suitable firms or lenders for deals or advice related to mortgage, loans or insurance. This mortgage broker in the UK excels in dealing with any problem of self-employed mortgage, remortgage, bad credit and many more. They also engage with people on Facebook and Twitter.
What Is A CIS Mortgage? Who Would Be Eligible to Apply?
The full-form of CIS is Construction Industry Scheme. So, a CIS mortgage is for any person registered with CIS. The workers under this scheme pay their tax to the HMRC in advance. Therefore, the lenders calculate their net income and not the net profit. With the past one year’s account, you can apply for a CIS mortgage. You can show the regular payslip and bank statements.
What Benefits Would CIS Give You in Mortgage Deals?
You can get these three benefits when applying for a CIS mortgage –
1. Higher ceiling amount
The lender would calculate the mortgage amount based on your annual income. Generally, they would give four times the annual income as a mortgage. It means you would have more purchasing power.
2. One year of account instead of the standard three years
Most of the traditional mortgages for the self-employed require more than two years of account. But with CIS mortgage, you can start working on your plans earlier than expected.
3. More options
High income would give you good deals in mortgages with low-interest rates. Your options would not be limited.
But, remember that high mortgage capacity does not mean that you should borrow more than necessary for that particular purchase.
Deposit for CIS Mortgages
Do not forget that CIS mortgage works like any other standard mortgages except that they consider net turnover rather than profit. A person with a stable employment history would be able to get a mortgage with a 5% deposit. But when you apply for a CIS mortgage, your purchasing power increases. At the same time, the lenders would also ask for a substantial amount of deposit. If you can cross this hurdle, you can reap the benefits of CIS mortgages.
What If You Have Bad Credit?
It’s not the end of the road if you have a bad credit history. Check your updated credit report and consult your advisor over the issue. You should disclose all your information and explain your previous failures and poor credit history. The advisor would likely come up with some solution.
You can also think about remortgage if you came under the CIS scheme recently. Check out all your options from an expert.
