Contractor Mortgages
Day rate, umbrella or limited company — lenders assess contractor income in three completely different ways. The right route can double what you qualify for.
Three income routes, one right answer
A contractor earning £500 a day can qualify for anything from £180,000 to £450,000 depending on how the lender assesses income. Day-rate annualisation, umbrella payslips, or company accounts — each route has lenders that prefer it, and choosing wrong means borrowing far less than you should.
- Day-rate contractors assessed at annualised contract value (×46 or ×48 weeks)
- Umbrella company contractors using PAYE payslips
- Ltd company contractors assessed on salary plus dividends or net profit
- CIS subcontractors in construction and trades
- Contract gaps, multiple contracts and IR35 — navigated with the right lender
Day rate is the fastest path to maximum borrowing
If you have a current contract and at least 12 months of continuous contracting history, day-rate lenders will annualise your contract value and apply a standard income multiple — typically 4.5× to 5.5×. That usually produces a far higher figure than your company accounts, which show income after expenses and tax planning.
We check which route produces the strongest result for your specific situation before submitting anything. Sometimes it is the day rate, sometimes the company accounts — and occasionally the umbrella payslip route wins for contractors who have recently switched structures.
Answered before you ask
Most day-rate lenders want at least 12 months of continuous contracting, though not necessarily with the same client. Some accept six months if your CV shows a longer career in the field. We match the requirement to your history before running any credit search.
Short gaps — up to six weeks — are usually fine with most lenders. Longer breaks or a current gap require careful lender selection; some will assess on the last completed contract if you have a strong track record. We would not submit until we know the lender's stance on your specific gap.
It can change which assessment route is available. Inside IR35, you are typically paid via PAYE through an umbrella or agency, so lenders treat you closer to an employee — sometimes helpful. Outside IR35 with your own Ltd, the day-rate annualisation route usually produces a higher figure. We assess your IR35 status as part of the income routing, not as an afterthought.
Contracting should unlock lending, not limit it
Bring us your current contract and we will show you exactly what each assessment route produces — in one conversation.
Request a private consultation