A remortgage should not become difficult simply because you are paid under CIS. Yet many subcontractors are told their income is too irregular, are offered a lower borrowing figure than expected, or are asked to produce paperwork that does not reflect how they actually work. So, can CIS subcontractors remortgage? Yes – and with the right lender, CIS deductions and contract income can be assessed in a far more practical way.
The difference is lender criteria. Some high street lenders treat a CIS worker as self-employed from day one and focus heavily on taxable profit. Others will consider your gross CIS income, often using payslips or monthly statements in a similar way to employed income. That distinction can have a major effect on how much you can borrow and how straightforward the application feels.
Can CIS subcontractors remortgage with CIS income?
CIS subcontractors can remortgage for the same reasons as any other homeowner: to secure a new rate, raise funds for home improvements, consolidate eligible borrowing, remove a borrower from a mortgage, or switch when a fixed deal ends. Being paid after Construction Industry Scheme deductions does not prevent this.
What matters is whether a lender can see stable, sustainable income and whether the new mortgage is affordable. A lender will also look at your loan-to-value, credit profile, outgoings, property type and the purpose of any additional borrowing. CIS status is one part of the picture, not the whole case.
The challenge is that lenders do not all interpret CIS income in the same way. One may ask for two or three years of accounts and tax calculations. Another may work from three months of CIS payslips or statements, provided you have a suitable work history and contract continuity. Applying to the wrong lender can therefore make a strong case look weaker than it is.
Why gross CIS income can change the outcome
CIS subcontractors commonly have tax deducted at source, currently at 20% for those registered under the scheme, before receiving payment. You may also claim legitimate business expenses to keep your tax position efficient. That is sensible financial planning, but it can reduce the net profit figure a conventional lender uses for affordability.
A specialist CIS lender may instead assess the gross income shown before CIS deductions, subject to its criteria. For a subcontractor with consistent earnings, this can produce a more realistic view of affordability than relying solely on a tax return figure.
It is not automatic, and it is not a workaround. The lender still needs evidence that the income is regular and likely to continue. But it means you should not assume you must increase your declared profit, alter your working arrangements or compromise your tax efficiency just to remortgage.
What lenders will usually want to see
The exact evidence depends on the lender and your circumstances, but a well-packaged CIS remortgage application often includes recent CIS payslips or deduction statements, personal bank statements showing income arriving, and proof of identity and address. If you are registered for Self Assessment, lenders may also request SA302s and tax year overviews.
Your current mortgage statement is essential, particularly where you are raising capital or approaching the end of a fixed rate. If your income is contract-based, provide the current contract and, where useful, previous contracts that demonstrate continuity in your line of work.
Do not assume gaps between sites or projects will end the conversation. Short gaps can be normal in construction. The key is explaining them clearly and showing the wider pattern of work. A lender is more likely to take a sensible view when the application tells a coherent story rather than leaving them to guess from documents alone.
Your deposit is replaced by equity
For a remortgage, the equivalent of a deposit is the equity in your home. The lower the loan-to-value, the wider your product choice is likely to be and the more competitive the pricing may become. For example, a homeowner borrowing £180,000 against a property worth £300,000 has a 60% loan-to-value.
If property values have risen since you bought, or you have repaid a meaningful part of the loan, you may be in a stronger position than at purchase. Conversely, borrowing extra can move you into a higher loan-to-value band, which may affect the rate available. It is worth comparing the total cost of the new deal, not just the headline rate.
A practical route to a CIS remortgage
Start early – ideally three to six months before your current deal ends. This gives time to review your income evidence, check the property value and source suitable options without drifting onto your lender’s standard variable rate.
First, establish what you need from the remortgage. If you are simply replacing an existing deal, the focus is likely to be rate, fees, flexibility and lender criteria. If you are raising money, be precise about the amount and purpose. Home improvements are often viewed differently from debt consolidation, and the affordability assessment will reflect that.
Next, assess income in the way the most suitable lenders are likely to assess it. This is where a specialist contractor broker earns their place. Rather than submitting a standard application and hoping the underwriter understands CIS deductions, the case can be placed with lenders that are already comfortable with this income model.
Finally, compare the product properly. A low rate with a large arrangement fee may not be the best deal for a smaller loan or a short fixed period. Early repayment charges matter too, especially if you expect to move home, sell a property or repay a lump sum before the fixed period ends.
When a product transfer may be better
Remortgaging is not always the right answer. Your existing lender may offer a product transfer, allowing you to switch to a new deal without a full affordability assessment or legal process. This can be useful if your income has recently reduced, you have had a credit issue, or you want the simplest route.
The trade-off is that your current lender’s options may not be the most competitive, and it may not be able to provide the additional borrowing you want. A proper review should compare a product transfer against remortgage options, taking account of fees, rates, flexibility and the likelihood of acceptance.
Situations that need more care
A recent move from PAYE employment into CIS work can still be workable, particularly if you have remained in the same trade, but lender choice becomes more important. The same is true if you have only been trading for a short period, have variable weekly income, work through a limited company alongside CIS contracts, or have adverse credit.
Credit issues do not necessarily rule out a remortgage. Defaults, missed payments and county court judgments are assessed differently depending on their age, value and whether they have been satisfied. Trying several lenders without a strategy, however, can create unnecessary credit searches and delays.
If your fixed rate ends soon, do not wait for perfect paperwork before seeking advice. A specialist can identify what is missing, explain which documents are most useful and narrow the lender search before an application is submitted.
Common questions from CIS subcontractors
Do I need three years of CIS accounts to remortgage?
Not always. Some lenders will want full accounts or tax calculations, while others can consider recent CIS payslips or statements and bank evidence. Your contract history, time in trade and overall profile influence the route available.
Can I remortgage to release equity as a CIS worker?
Yes, provided the lender is satisfied with affordability, the property value and the reason for borrowing. The amount available will depend on the lender’s maximum loan-to-value and its assessment of your income and commitments.
Will CIS tax deductions damage my affordability?
They can with lenders that rely only on net profit or do not understand the scheme. Lenders that assess gross CIS income may take a more representative view, subject to their underwriting criteria.
A CIS remortgage is not about persuading a lender to make an exception. It is about presenting genuine income to a lender that knows how to assess it. Residential Mortgage Hub can help you test the market early, protect your tax-efficient setup and move towards a new deal with a clear plan rather than a last-minute scramble.
