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Contractor & Day-Rate Mortgages
A day rate isn't a payslip, and it shouldn't be assessed like one
Contractor mortgages work best when the lender understands how you're actually paid. If you're a contractor or day-rate worker, you've probably already come across lenders who want two or three years of company accounts before they'll even talk numbers with you, as if your income looks the same as someone on a fixed annual salary. It doesn't, and it shouldn't need to be forced into that shape to get a mortgage.
Contractor mortgages built around how you actually get paid
We work with lenders who assess contractor income properly, typically using your day rate annualised (day rate × 5 days × 46–48 working weeks) rather than averaging historic accounts. For many contractors, this results in a higher affordable loan amount than a standard self-employed assessment would allow, because it reflects your actual current earning power rather than an outdated average.
IR35, gaps between contracts, and contract history
Whether you operate inside or outside IR35 affects which lenders are the right fit, since criteria differ by lender depending on how your contract income is structured. We'll factor this into the recommendation from the outset, rather than finding out partway through an application that it's a problem.
Gaps between contracts are common and don't have to mean automatic decline. What matters most is your overall track record. Lenders experienced with contractors are used to seeing gaps and will assess them in context, provided you can explain the reason and show a consistent pattern of work in your field.
How much contracting history you need varies by lender. Some will consider you with as little as 3–6 months in your current contract if you have a track record in the same field beforehand, while others prefer a full 12 months. We'll match you to lenders whose requirements fit where you actually are.
Why contractors choose TLD
- Access to lenders who assess your day rate, not just historic accounts
- Independent advice, not tied to any one lender
- 12,800+ plans arranged and £1.07bn+ in cover placed since 2015
- Named Stockport's Three Best Rated Insurance Services, 2022 to 2026
- Your first consultation is free, with no obligation
No sick pay between contracts? Here's how to protect your income
If you're unable to work through illness or injury, there's no employer to keep paying you. Income protection for contractors is designed around exactly the gap in cover that contracting can leave, replacing part of your income for as long as you need it.
Frequently Asked Questions
Can I get a mortgage based on my day rate rather than a salary?
Yes. A number of specialist lenders will assess contractor income using your day rate rather than requiring several years of trading accounts, typically calculating annualised income as day rate × 5 days × 46–48 weeks. This can result in a higher affordable loan amount than standard self-employed assessments.
Does my IR35 status affect my mortgage application?
It can. Some lenders have specific criteria depending on whether you operate inside or outside IR35, and how your contract income is structured. We'll match you with lenders who understand your specific arrangement rather than applying a one-size-fits-all self-employed test.
What if I have gaps between contracts?
Gaps aren't automatically a problem, particularly if your overall contracting history is strong and you can explain the reason, such as a planned break or a sector-wide slowdown. Specialist lenders are used to seeing this and assess it in context rather than as a red flag.
How much contracting history do I need before I can apply?
This varies by lender. Some will consider you with as little as 3–6 months in your current contract if you have a track record in the same field beforehand, while others prefer 12 months or more. We'll identify which lenders suit your specific history.
Do I need an accountant's reference or SA302s?
Requirements vary by lender and how your income is structured, for example a day-rate contractor versus a limited company. We'll confirm exactly what's needed for your situation before you apply, so there are no surprises partway through.