Contractor Mortgage Affordability Calculator

With a specialist UK lender, typically 4.5 times your day-rate income, and up to 5.5 times with some lenders. At £500/day that income is £115,000 (£500 × 5 days × 46 weeks), so £518,000 to £633,000. A lender working from salary plus dividends would see about £89,669 even if you take out all your profit, and offer around £404,000. The table on this page shows seven day rates. Deposit, credit history and other debts all move the final figure.

In the UK, 5% to 10% is typical if you meet the lender's criteria, and around 15% is common if you only have one year of accounts. A bigger deposit gets you better rates. In Ireland, Central Bank rules require at least 10% for every buyer, contractor or not.

Yes. Inside IR35 through an umbrella, some lenders work from your gross contract rate and others from your payslips, which show your pay after employer NI and the umbrella margin. The payslip figure is much lower, so which lender you use makes a real difference to how much you can borrow.

Because standard underwriting looks at what you draw from your company, not what you bill. Most high street lenders use salary plus dividends from your last two years of tax returns; a few use the salary alone, which for a director on £12,570 is a very low figure. Either way, profit you leave in the company doesn't count. Contractor-specialist lenders use the day rate formula instead: day rate × 5 days × 46 weeks, so a £600/day contractor starts from £138,000.

Specialist UK lenders annualise your contract: day rate × 5 days × 46 billable weeks. They then apply an income multiple, typically 4.5×, with some going to 5× or 5.5× for stronger applicants. A £600/day contractor has a £138,000 baseline, so 4.5× gives £621,000 and 5.5× gives £759,000. Irish lenders don't use this formula: they assess the income in your accounts, within the Central Bank's loan-to-income caps.

Yes, for the UK. Outside IR35 (Ltd company) contractors are assessed on the day rate formula by specialist lenders. Inside IR35 contractors via umbrella receive a PAYE payslip, which some lenders treat like a fixed-term employee. However, most specialist lenders now accept umbrella payslips and assess affordability on the gross contract rate, so the practical difference has narrowed. The key is choosing a lender who specialises in contractor underwriting.

Specialist lenders typically require: your current contract (usually at least 3 months remaining), 3 to 6 months of business bank statements showing contract income, the last 2 years of SA302 forms (UK) or Form 11 (Ireland) as supporting evidence, and proof of contracting history (2 or more years preferred). Some lenders accept first-time contractors if the role is in a field where you have prior permanent employment.

The industry standard is 46 weeks. This accounts for approximately 6 weeks of annual leave and bank holidays during which contractors typically do not bill. Most specialist lenders use 46 or 48 weeks as the income baseline. Using 52 weeks overstates income, and most underwriters cap it at 48 weeks regardless of evidence. The calculator defaults to 46 weeks, which is the most conservative and most widely accepted figure.

Some lenders allow you to add dividend income; others use only one method. For Ltd company contractors outside IR35, specialist lenders typically use the day rate formula alone, which already represents your full earning capacity. Adding dividends is sometimes possible and can increase borrowing, but only with lenders who explicitly support this approach. A specialist contractor mortgage broker can identify which lenders will maximise your position.

Not necessarily. Contractor-specialist mortgages have moved into the mainstream over the past decade. Many specialist lenders now offer rates comparable to standard products, particularly for contractors with a strong track record (2 or more years) and a current contract in place. The main difference is the underwriting methodology, not the interest rate. Some high street banks have also introduced contractor-friendly underwriting, though their criteria tend to be stricter.

In the UK, 4.5 times your day-rate income is typical, and some lenders go to 5 or 5.5 times for stronger applicants; the calculator shows 4.5× to 5.5×. In Ireland the Central Bank caps mortgages at 4 times gross income for first-time buyers and 3.5 times for movers, and lets lenders exceed that on a limited share of loans, typically up to 4.75× and 4.5×. The Ireland range here (3.5× to 4.5×) spans those limits applied to full-year day-rate income, which is an upper bound: Irish lenders assess the income your accounts show.