Pawel had been told by his own bank that there would be no problem in obtaining a mortgage, as he was already a CIS contractor. So he made an offer on a house, which was accepted. But when Pawel made a follow-up mortgage appointment with his bank, the mortgage was declined – because his Net Profit was too small for the loan he required.
Pawel’s accountant was using acceptable business expenses to help reduce his tax bill, but because of this, he was declaring a net profit on his tax return of £12,332 and the lender was only willing to offer a mortgage of £46,000.
A colleague recommended CIS Mortgage.co.uk, and within 30-minutes Pawel had been assessed by our independent Contractor Mortgage Broker.
Our expert calculated Pawel’s average day-rate on the CIS Scheme at £200, and used an average of his most recent earnings before tax, over 6 months, to give an annual figure that allowed him to borrow £216,000, and secure the house he wanted!