Many lenders work out a contractor's income from their day rate rather than their accounts, typically your day rate × 5 days × 46 weeks. That can mean borrowing far more than your accounts or payslips would suggest. Most lenders want to see a current contract and around 12 months' contracting history, and some accept less if you've moved into contracting in the same line of work. We're whole-of-market advisers in Sheffield, working with contractors across the UK.
Lenders that specialise in contractors look at what you earn on contract, not what you pay yourself. For a limited company contractor who takes a small salary and dividends, that difference can be large.
On day-rate assessment, the same contractor could borrow almost twice as much as on their accounts.
Illustration only. Lenders still check your outgoings, credit commitments and deposit, and many cap the multiple or the income they'll use for larger loans. Check what you could borrow.
If you're a sole trader or company director who doesn't work on contracts, see our self-employed mortgages page.
Short gaps between contracts are common, and many lenders accept them. We'll tell you how each lender treats your history before you apply.
Day-rate assessment usually suits limited company contractors who pay themselves a low salary plus dividends, because it uses your full contract income. Assessment on your accounts or tax returns can suit contractors with a long, profitable trading history, or where your day rate is above what a lender will use. Some lenders do one, some the other, and some either. We compare both for you.
Your IR35 status affects how you're taxed, but it doesn't usually stop a lender assessing your day rate. If you work inside IR35 through an umbrella company, some lenders treat you like an employee and use your payslips, while others still use your contract rate. We'll tell you how each lender treats your setup.
Yes. Some lenders assess you on your contract day rate, others on your umbrella company payslips. We'll find the lender whose approach works best for your income.
If you've moved from permanent employment into contracting in the same line of work, some lenders will consider you even on your first contract, provided you have a track record in that field. The more contracting history you have, the more lenders you can choose from.
Many lenders like to see around 12 months' contracting history. Some accept less, or even a first contract, if you've worked in the same field before.
Our advisers are based at Beehive Works in Sheffield, and we work with contractors across South Yorkshire and the UK, from engineering contractors around the Advanced Manufacturing Park to NHS locums and IT contractors. Contractor mortgage advice is given by our qualified team, including Robert Wilson-Rust (Senior Mortgage and Protection Adviser), and Tiffany Taylor and Katie Stoker (Mortgage and Protection Advisers), all CeMAP qualified. Meet our Sheffield mortgage advisers.
Get answers to common questions about contractor mortgages.
Can I get a mortgage as a contractor?
Yes. Many lenders offer mortgages for contractors, and some assess your income on your day rate rather than your accounts. Most want to see a current contract and a track record of contracting, typically around 12 months.
How do lenders calculate a contractor's income?
Lenders that use day rates usually multiply your day rate by 5 days a week and 46 weeks a year; some use 48 weeks. On £450 a day, that's £103,500 a year. Others assess you on your accounts, tax returns or payslips instead.
Does IR35 affect my mortgage?
It affects your tax, but it doesn't usually stop a lender using your day rate. If you're inside IR35 and paid through an umbrella company, some lenders will use your payslips instead.
Can I get a mortgage on a new contract?
Often, yes, especially if you've worked in the same line of work before. Lenders may ask to see your previous employment or contracts as evidence of a track record.
How much deposit do contractors need?
Many lenders treat contractors like other borrowers, so a deposit from 5–10% may be possible, depending on your history and the lender. A larger deposit gives you more lenders to choose from and better rates.
Do you charge more for contractor mortgages?
No. Contractor cases can take more work, but our fee is the same as any other mortgage: typically £795, and your initial consultations are free.
Reviewed by Zoe White CeMAP, Compliance Officer, Friends Capital. Last reviewed October 2026.
Our specialist advisers understand the unique challenges faced by self-employed professionals and can help you navigate the mortgage market with confidence.
Fill in your details for a quick callback from our team
Wondering what we charge? Contractor cases can take more work, but the fee is the same as any other mortgage: typically £795, and your initial consultations and discussions are free. See our fees in full.