If you're a contractor paid on a daily rate, mainstream mortgage lenders may undervalue your income. Specialist lenders calculate affordability differently — using your contract rate rather than just your company salary and dividends — which can dramatically increase your borrowing.
Day Rate Calculation
Specialist lenders annualise your contract rate. For example, a contractor earning £500 per day, working 5 days per week for 46 weeks, is assessed as earning £115,000 per annum — often far more than their SA302 or company accounts would show.
What You'll Need
- • Current contract with at least 3 months remaining (some accept less)
- • Evidence of continuous contracting (usually 12+ months)
- • Clean credit history
- • Standard deposit requirements apply