A Real Case From Our Practice
Many people working under CIS (Construction Industry Scheme) believe that once they receive an Agreement in Principle, their mortgage is practically approved.
But that is not the case.
Recently, we faced another situation that clearly shows why CIS income must remain stable until the property purchase is fully completed.
What happened?
Our client received a preliminary approval for around £270,000.
At that moment, everything looked great:
- good income,
- suitable mortgage amount,
- high chances of approval.
We immediately warned the client:
Until receiving the mortgage offer and completing the purchase, it is very important to maintain the same level of income.
However, while searching for a property, several months passed.
The client took holidays, had time off, and was barely working during that period.
Later, he found his dream home.
The property price was £268,000.
The required mortgage amount was around £240,000.
And exactly at that point, the bank reviewed the income again.
What changed?
Due to the reduced income, the bank recalculated the available mortgage amount.
The result was very disappointing:
Instead of £270,000, the bank was only willing to approve £220,000.
The difference was £50,000.
Just a few months of reduced income put the entire property purchase at risk.
Why is this especially important for people working under CIS?
Because banks very often assess the client’s current income.
In particular, banks carefully review:
- recent payslips,
- CIS statements,
- work stability,
- and consistency of income.
If income starts to decrease, the mortgage amount the bank is willing to approve may also decrease.
And many people realise this too late.
It is important to understand
Even after receiving a mortgage offer, the bank may:
- request additional documents,
- review income again,
- recalculate the available mortgage amount,
- or reassess the client’s financial situation.
And if the transaction is delayed and the application has to be submitted again, the bank may reassess everything from the beginning — as if the previous approval never existed.
What mistakes do CIS clients make most often?
Very often people:
- take long holidays,
- reduce their working hours,
- temporarily stop working,
- change their working structure,
- or reduce their income before purchasing a property.
But this is exactly the period when financial stability is especially important for the bank.
What do we recommend?
If you are planning to buy a property while working under CIS, try to:
avoid reducing your income,
avoid long breaks from work,
avoid sudden work changes,
and maintain stable income until you receive the keys to your new home.
Because a CIS mortgage is not only about your current income.
It is also about the stability of that income.
Why does this matter?
Even one mistake can:
- reduce the available mortgage amount,
- affect the bank’s decision,
- increase stress during the transaction,
- or put the property purchase at risk.
That is why it is so important to understand in advance how banks assess CIS income and what they pay attention to during the mortgage application process.
Consultation
Working under CIS and planning to apply for a mortgage?
Before submitting an application, it is important to understand:
how the bank will calculate your income,
what mortgage amount is realistically available to you,
and what mistakes may affect approval.
You can book a consultation with our team — we will help assess your situation and prepare you more confidently for purchasing a property.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
This post is for information purposes only and does not constitute financial or mortgage advice.
