Near you, no matter where you are.
Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Specialist
Contractor Mortgages
“Contract work. Permanent home.”
Contractors often earn more than their employed peers yet get offered less. The right lender looks at your day rate, not your payslip, and that changes everything.
FCA regulated · whole of market · 90+ lenders · 5 star reviews
Quick answer
A contractor mortgage is assessed on your contract rate rather than your accounts. Many lenders multiply your day rate by five days and 46 to 48 weeks to reach an annual income. It works for limited company contractors, umbrella workers, and those inside or outside IR35. The main thing to know is that lenders want a track record in your field and a current contract.
Contracting history
Often 12 months, sometimes less
How lenders assess you
Day rate × 5 × 46 to 48 weeks
When to start
With time left on your contract
Main thing to watch
Gaps and renewal dates
How day rate lending works
Instead of averaging accounts, the lender annualises your contract rate. A £500 day rate at 46 weeks becomes an income of £115,000 for affordability.
Hourly contractors are treated in a similar way, usually on 37.5 hours a week.
Lenders want your current contract, evidence of previous contracts and, sometimes, an explanation of gaps.
Moving from permanent to contract work
If you’ve just switched to contracting in the same field, some lenders will accept you with a signed contract and a strong CV.
Renewals and short gaps are normal. We know which lenders are relaxed about them.
Eligibility and what lenders assess
Who may qualify
Fixed term contractors through a limited company or umbrella.
Deposit and LTV
From 5% to 10% with the right lender.
Income and affordability
Annualised day or hourly rate.
Credit history
Standard checks apply.
Contract terms
Time remaining and renewal history matter.
Common reasons for decline
Too short a track record, or a contract about to end.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- A contract ending during the application can delay things
- Long gaps between contracts reduce options
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- If your contract ends within weeks, waiting for renewal may be better
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
Current contract
Previous contracts or CV
Bank statements showing contract income
Company accounts if applicable
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Contractor Mortgage FAQs
How long do I need to have been contracting?
What if my contract is due for renewal?
Does being inside IR35 affect my mortgage?
What documents will I need?
Can umbrella contractors use day rate?
Are contractor rates higher?
Contracting and ready to buy?
Tell us your day rate and history and we’ll show you what lenders would offer.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.