Contractor Mortgages
Contractor mortgages assessed on your annualised day rate - not the salary and dividends drawn from your limited company - unlocking significantly higher borrowing than standard assessment for IT, engineering, and professional contractors.
Your day rate, not your dividends
A contractor drawing £500/day earns approximately £115,000 per year on a standard working year. A mainstream lender assessing their limited company salary of £12,570 and dividends of £30,000 offers a mortgage of around £190,000. A specialist day-rate contractor lender assessing the annualised rate of £115,000 offers approximately £517,000. The difference is the assessment methodology - and choosing the right lender is everything.
Every contractor structure placed
Day Rate Annualisation
Specialist lenders multiply the current daily contract rate by 46-48 working weeks per year to arrive at the assessed income figure. The contract must be current or recently renewed. This bypasses the low salary and dividends drawn from the limited company.
IT and Technology Contractors
IT contractors are the most common beneficiary of day-rate assessment. The combination of high daily rates and limited company ownership makes the gap between mainstream and specialist assessed income the largest in this sector.
Engineering and Professional Contractors
Engineering, legal, financial services, and other professional contractors working outside IR35 are assessed the same way. The key is confirming the current contract rate with a copy of the current contract.
Inside IR35 Contractors
Contractors inside IR35 are assessed differently - on the income received via PAYE from the umbrella or employer rather than the day rate. We identify which lender's assessment works best for your specific IR35 status.
Fixed-Term Employment Contractors
Contractors employed on fixed-term contracts with PAYE income - rather than operating via limited company - are assessed by lenders experienced with fixed-term employment history. The employment type is not a barrier.
Gap Periods in Contracting
Contractors with short gaps between contracts - typical in contracting - are assessed by specialist lenders who understand the contracting market and do not treat gaps as they would treat gaps in permanent employment.
How it works
Share your contract details
Tell us your current day rate, contract end date, and how long you have been contracting. We assess whether day-rate or dividend-based assessment produces the better outcome for your specific situation.
Lender matching
We identify the specific lender whose day-rate assessment methodology - rate, weeks, and contract currency - maximises your assessed income and qualifies you for the best available rate.
Contract evidence and application
Your current contract and recent bank statements showing contract payments are the primary evidence. We assemble this in the format each lender requires and manage the full application.
Mortgage offer
One application to the right lender. Typical timeline: 4 to 6 weeks from full application to mortgage offer.
Contracting and need a mortgage?
Tell us your day rate and contract details. We identify the lender whose assessment gives you the best outcome - same working day response.
Frequently asked questions
How is day rate income annualised for a mortgage?
Specialist lenders multiply the current daily contract rate by 46-48 working weeks per year (230-240 days). On a £500/day rate, the assessed income is £115,000-£120,000 per year - dramatically higher than salary and dividends drawn from a limited company.
What if my contract is about to expire?
Most day-rate lenders require the contract to be current at the point of application, or renewed within the last few weeks. If your contract is due for renewal, beginning the mortgage application before the expiry date is advisable. We identify which lenders are most flexible on contract timing.
Can I get a contractor mortgage if I am inside IR35?
Yes, but via different assessment. Inside-IR35 contractors are assessed on the PAYE income received from the umbrella or employer rather than the day rate. The lender panel is slightly different for inside-IR35 contractors.
What if I have gaps between contracts?
Specialist contractor lenders understand that gaps between contracts are normal in contracting and do not treat them as they would treat gaps in permanent employment. Short gaps of 4-8 weeks are typically accepted.
What documents do I need for a contractor mortgage?
Current contract (or most recent contract if between contracts), last 3 months' bank statements showing contract payments, and typically 12 months of business bank statements. SA302s and company accounts are not required by most day-rate lenders.