Contractors Get Worse Mortgage Advice Than They Deserve.
Day rate contractor, IR35, fixed-term contracts — the high street banks don't know what to do with you. Plenty of specialist lenders do.
How banks get contractor income wrong
High street banks assess affordability using salary or payslip income. For a contractor working through an umbrella company or limited company, that's often a fraction of what you actually earn.
A specialist lender will annualise your day rate instead: day rate × working days per year. A £500/day contractor working 46 weeks has an annual income of £115,000. A high street bank looking at a £30,000 salary dividend structure sees something very different.
That gap is the difference between being told you can't borrow enough and being able to buy the property you actually want.
Matching you to the right lender
Criteria varies significantly across lenders. Some require a minimum remaining contract term. Some have specific requirements around IR35 status. Some won't lend to umbrella company contractors; others prefer it.
We assess your specific arrangement — day rate, contract length, structure, industry, track record — and match you to lenders whose criteria actually fits. We don't apply speculatively. Every application we submit has a strong chance of approval.
Tell us about your contractDocuments for a contractor mortgage
Real case — anonymised
A software developer contracting inside IR35 via umbrella was told by his bank he could only borrow £180,000 based on his declared salary equivalent. His day rate was £650. We found a specialist lender who used the annualised day rate — he was approved for £310,000. Same income. Different lender.
— Contractor case, South Yorkshire
Contractor mortgage FAQs
Many specialist lenders will — typically annualising your day rate (e.g. £500 × 5 days × 46 weeks = £115,000). This dramatically increases the borrowing figure. High street lenders generally won't do this. We know exactly which lenders use day rate assessment and on what basis.
It affects which lenders you can access and how they assess your income. Inside IR35 contractors are treated more like employees for tax — some lenders prefer this. Outside IR35 through a limited company requires a lender comfortable with the director/self-employed assessment route. We match you to the right approach for your structure.
Some lenders require a minimum remaining contract term (often 3–6 months). Others are more flexible if you have a strong track record of renewals in the same role or sector. A gap between contracts can also be explained with the right lender if it's within normal contractor patterns.
Umbrella company workers are assessed differently by different lenders. Some will use day rate annualisation; others will look at umbrella payslips and P60s. We know the current lender positions and can match you to the right one for your specific umbrella arrangement.
Tell us about your contract
We'll come back to you within 1 working day with an honest assessment.
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Important: Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. There may be a fee for mortgage advice ranging from £100 to £750.