Contractor mortgages: borrowing on your day rate

Many lenders work out a contractor’s income from the day rate, not the accounts: day rate × 5 days × 46 weeks. For most contractors that means borrowing a lot more. Compare both below, then talk it through with a CeMAP-qualified advisor.

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Self-employed · Contractors

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Reviewed by Darren Barrett, CeMAP, Director · October 2026

Contractor mortgage calculator

What could you borrow?

Complete a few basic details to get an idea of the maximum mortgage lenders could offer on your contract. Add your accounts too, if you have them, to see the difference the contractor method makes.

How you work

I work as

Your contract

How are you paid?

Day rateWeekly rateMonthly (PAYE)

Day rate

Days a week

Months contracting so far

Months left on this contract

Lenders usually count 46 weeks a year, to allow for holidays and gaps between contracts. Months contracting can include earlier contracts.

Compare with your accounts optional

Your salary plus your share of the company’s net profit, or your net profit if you’re a sole trader.

Latest year

Year before

Other income optional

A job as well, a pension, benefits, maintenance or rental income.

As a guide, you could borrow up to

–

Add your day rate to see what you could borrow.

This is a guide, not a mortgage offer. Whether you qualify, and how much you could borrow, depends on each lender’s criteria, your credit history, your outgoings, your deposit and the property. We’ll confirm a real figure with you before anything is applied for.

How lenders work it out

Your rate, not your accounts

Lenders with a contractor policy look at what your contract pays, before expenses and before what you leave in your company. How they turn that into a yearly income depends on how you’re paid.

Day rate

Day rate × 5 × 46 weeks

A £450 day rate becomes £103,500 a year. If your contract is for fewer days a week, it’s worked out on those days instead.

Weekly rate

Weekly rate × 46 weeks

Counting 46 weeks rather than 52 allows for holidays and the gaps between contracts.

Monthly, through PAYE

Treated like an employee

Paid monthly with tax taken off, through PAYE or an umbrella company? Lenders can use twelve months’ pay from your payslips, as they would for an employee.

Through your own limited company? Lenders can use your contract, or your accounts: your salary plus your share of the company’s profit. We look at both and go to the lenders whose method works best for you.

Want to see if you’d qualify?

A CeMAP-qualified advisor will look at your contract and history and tell you which lenders fit. There’s no obligation.

or call 01202 733 809

What lenders look for

A copy of your current contract, and usually your previous ones.
Time contracting and time left. Most lenders want at least 6 months either done or left on your contract. Some want 12 months in total, done and left together, and that can be across different contracts.
How you’re paid: PAYE, an umbrella company or your own limited company, and your IR35 status.
Bank statements showing the contract income coming in.

A worked example

An IT contractor on £450 a day, five days a week, with their own limited company.

Contractor method: £450 × 5 × 46£103,500 a year

At 5× to 6×£518,000 to £621,000

From accounts: £12,570 salary + £55,000 profit share£67,570 a year

At 4.75× to 5.5×£321,000 to £372,000

Extra, up to£249,000

An illustration. Each lender sets its own multiples, which also depend on your loan to value, credit history and outgoings.

Need to borrow more than this shows?

Lenders work out contractor income in different ways. We’ll tell you honestly what’s possible for you, and what it would take.

or call 01202 733 809

From our clients

What self-employed clients say

5.0160+ Google reviews

Ben Helped Us

Ben helped us get a mortgage during a pandemic! And he got us a great rate, despite my husband being a contractor. As first-time buyers, we were very new to the whole process but Ben went above and beyond to explain everything really clearly. He was always responsive and even helped with non-mortgage advice! I would recommend him to anyone!

Lucy Fallon View on Google

Ben At Barrett Mortgages

Ben at Barrett Mortgages was unbelievably helpful and patient with this first time mortgage novice. Would highly recommend these guys. Well versed in working with freelancers.

Catriona Price View on Google

Darren Was On Point

My wife and I recently used Darren at Barrett Mortgages and I couldn't recommend them highly enough. We're first time buyers so knew very little about the process and Darren always took the time to answer any of our questions and everyone at Barrett was super helpful. We didn't think it would be possible to get a mortgage as I'm a freelance musician but they were able to get us a brilliant deal. Would highly recommend Darren and the team for anyone needing a mortgage.

Sam Rapley View on Google

Contractor mortgage questions

Can I get a mortgage on my first contract?

Yes. Most lenders look at the time you’ve done and the time you have left together: at least 6 months either done or left suits most of them. Some want 12 months in total, which can be across different contracts. We’ll know which lenders fit before anything is applied for.

Do I need two years of accounts?

Not if the lender uses your contract. Under a contractor policy, many lenders ask for your current contract and some history of contracting instead of accounts and tax calculations. If your accounts give a better figure, we can use those instead.

What if my contract is about to end?

If you’ve already done 6 months or more, most lenders can still help. If not, it’s usually worth waiting for the renewal or your next contract before applying, as earlier contracts count too.

Does IR35 affect my mortgage?

It can change how you’re paid, and so how lenders look at you. Inside IR35 and paid through an umbrella company or PAYE, you can be treated like an employee. Outside IR35 through your own company, lenders can use your day rate or your accounts.

How much deposit do I need?

Many lenders that use your day rate will lend up to 90% of the price, so a 10% deposit. A bigger deposit opens up more lenders and lower rates.

What paperwork will I need?

Your current contract, your CV or previous contracts, recent bank statements, ID and proof of your deposit. If we go by your accounts instead, your tax calculations and tax year overviews, or your company accounts.

Talk to an advisor

Talk to us about your contract

Leave your name and number and a CeMAP-qualified advisor will call you back. We’ll tell you which lenders will use your day rate, and what you’ll need.

Darren, Beth, Ben & JakeSpecialist self-employed mortgage advisors in Poole

Rated 5.0 from 160+ Google reviews
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