How do lenders work out a contractor's income for a mortgage?

Specialist contractor lenders annualise your day rate — typically day rate × 5 working days × around 46 to 48 weeks (deducting a few weeks for holiday and sickness) — and then lend a multiple of that figure, often around 4× to 5×. This is why a contractor can often borrow more with a specialist lender than the high street would allow. This calculator assumes you work outside IR35 on a genuine day rate; inside-IR35 contractors are usually assessed as employed. Figures are illustrative.

Can I get a mortgage as a day-rate contractor?

Yes — many specialist and some mainstream lenders offer contractor mortgages based on your annualised day rate rather than full company accounts, often with as little as 12 months' contracting history. The lender, the multiple applied and the documents required depend on your contract, time in industry, deposit and credit profile. A regulated mortgage adviser who places contractor cases can confirm which lenders fit your situation.

Contractor Mortgage Calculator (Day-Rate)

Specialist lenders annualise a contractor's day rate and lend a multiple of that figure. This calculator shows the illustrative annualised income a lender may use and a ballpark borrowing range. It is a guide only — your IR35 status and contract affect which lenders and figures apply.

For illustration purposes only

This tool gives an illustrative annualised income figure from your day rate, using a standard weeks-worked assumption. It is a guide to how lenders may view contractor income — not a quote, a mortgage offer, financial advice or tax advice. Lenders calculate contractor income in different ways.

Speak to a qualified professionalHow much you can borrow depends on the lender — speak to an FCA-regulated mortgage adviser about contractor-friendly lenders.

Tax & IR35Your take-home pay and tax position depend on your contract structure (e.g. IR35) — consult a qualified accountant or tax adviser. Inside-IR35 contractors are usually assessed as employed.

Niche Advice Limited accepts no responsibility for any decisions made on the basis of this calculator. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority (FCA Reference: 750263). Niche Advice Limited is a credit broker, not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage secured against it.

Lender criteria change frequently, and your individual circumstances may produce different results.

Get advice from a whole-of-market specialist

This is a guide only. For figures tailored to you — with no upfront fees — request a callback from an FCA-regulated adviser.

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