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