Mortgage Affordability on a €950/Day IT Contract Rate (Ireland)

On a €950 day rate, your annual income baseline using the contractor formula (€950 × 5 days × 46 weeks) is €218,500. A contractor-specialist lender applying income multiples of 3.5× to 4.5× would offer between €765,000 and €983,000. A high street bank assessing a director salary of €14,000 would typically offer around €56,000.

Most high street lenders assess Ltd company directors on their PAYE salary, not their actual earning power. A contractor drawing €14,000 (a minimum director salary) is assessed as a low earner. Contractor-specialist lenders understand this structure and base affordability on the day rate formula instead, which accurately reflects your earning capacity.

For Irish contractors operating through a Ltd company, specialist lenders use the day-rate formula (€950 × 5 × 46 = €218,500) rather than your director salary. The Central Bank macroprudential rules typically limit borrowing to 3.5× income for second-time buyers, with some lenders offering 4× to 4.5× for strong applicants. Your €765,000 to €983,000 range applies these specialist multiples.

For a €950/day contract: your current contract (at least 3 months remaining), last 3–6 months of business bank statements, last 2 years of Form 11 (Revenue self-assessment), certificate of tax clearance, and certified company accounts.

The industry standard is 46 weeks. This accounts for approximately 6 weeks of annual leave and bank holidays during which contractors do not bill. Most specialist lenders use 46 to 48 weeks. The calculator defaults to 46, which is the most conservative and most widely accepted figure for underwriting purposes.

Yes, in a few ways. Some specialist lenders go up to 4.5× income or higher for high earners with a strong track record. Adding a second applicant's income increases the borrowing ceiling. Some lenders will also consider dividend income on top of the day rate formula. A specialist contractor mortgage broker can identify which lenders will give you the maximum figure for your specific situation.

Most specialist lenders in Ireland offer up to 80–90% LTV, subject to Central Bank macroprudential rules. First-time buyers can borrow up to 4× income and need only a 10% deposit; second-time buyers typically need 20%. On your maximum specialist borrowing of €983,000, a 10% deposit allows purchase of up to €1,092,000 for a first-time buyer, or a 20% deposit gives a purchase price of €1,229,000 for a second-time buyer.

With a contractor-specialist mortgage broker familiar with Irish lenders, expect 6–10 weeks from enquiry to loan offer. Stages: approval in principle (AIP) — 1–2 weeks; full application with documents — 1–2 weeks; underwriting and valuation — 3–6 weeks. Having your current contract, last 2 years of Form 11, business bank statements, and tax clearance certificate prepared in advance will shorten the process. Revenue's myAccount allows you to download your tax history digitally.