One of the biggest myths about contractor mortgages? That you’re limited to borrowing just 3-4 times your salary. In reality, specialist lenders use very different rules—meaning you could qualify for far more than a high-street bank offers.
How Lenders Calculate Your Borrowing Power
Unlike traditional mortgages (based on salary multiples), contractor lenders focus on:
???? Your day rate – Most use 4.5x to 5.5x your annualized contract rate.
(Example: £400/day x 220 working days = £88,000 annual income → Up to £484,000 mortgage potential.)
???? Contract type & length –
12+ months remaining? Lenders may use your full day rate.
Rolling or short-term? Some lenders apply a discount (e.g., 80% of rate).
???? Limited company directors – If you pay yourself via dividends + salary, lenders can combine both (or even consider retained profits).
3 Ways to Boost Your Mortgage Amount
Extend your contract – A 12-month+ contract often unlocks better rates.
Use an accountant’s reference – Confirms your earnings if you’re newly self-employed.
Target contractor-friendly lenders – Some niche banks offer 5.5x multiples (vs. 4x at high-street lenders).
Watch Out For…
⚠ IR35 status – If you’re inside IR35, lenders may treat you as a permanent employee (lowering borrowing power).
⚠ Credit history – Even with strong earnings, poor credit can reduce loan amounts.
Think You’re Being Underestimated?
Many contractors qualify for £50K–£100K more than they expect. Our free contractor mortgage calculator gives you a realistic estimate in minutes.
???? Get Your Personalized Quote Now
Why This Works:
✅ Debunks myths – Corrects common misconceptions.
✅ Uses clear examples – Makes complex math simple.
✅ Encourages action – Direct CTA to use your calculator/service.
Need a different angle? I can tweak this to focus on:
First-time buyer contractors
Remortgaging for better rates
Bad credit scenarios
Let me know which topic you’d like next!
New chat