Contractor Mortgage Calculator, 2026/27

How this is calculated

The calculator multiplies your day rate by the number of days you typically work each week and by 46 working weeks, a common approximation used by specialist contractor mortgage brokers to annualise day rate income without requiring years of finalised limited company accounts. That annualised figure is then multiplied by a chosen income multiple to give an estimated maximum borrowing amount.

This differs sharply from a high-street lender's approach, which usually wants two to three years of SA302s or company accounts, salary and dividend history, and often undervalues genuinely strong contracting income as a result.

Why specialist lenders assess contractors differently

Specialist and some high-street lenders have developed contractor-specific underwriting that looks at the day rate, contract history and time left on the current contract rather than salary and dividends drawn from a limited company, recognising that many contractors deliberately keep drawn income low for tax efficiency. This can mean a contractor with a strong day rate but low declared salary and dividends is offered significantly more through a specialist lender than a mainstream one working from company accounts alone.

Lenders will still look at gaps between contracts, the sector you work in, and whether your contract is inside or outside IR35, since inside IR35 contracts are sometimes assessed more like employment income.

Improving your mortgage position as a contractor

Keeping a clear contract history with limited gaps, having at least one contract renewal on your CV, and having several months remaining on your current contract at application all help a specialist underwriter view your income as stable. A mortgage broker experienced with contractors can identify which lenders will use your day rate directly, rather than your drawn salary and dividends, which often makes a material difference to the amount you can borrow.

It is also worth reviewing this alongside your limited company take-home pay figures, since some lenders will consider whichever of day rate or company profit produces the higher, more favourable assessment.

Do mortgage lenders use my day rate or my company dividends?

It depends on the lender. Specialist contractor mortgage lenders often annualise your day rate directly, while high-street lenders typically look at two to three years of salary and dividends taken from your limited company accounts or SA302s.

How many working weeks do lenders typically assume in a year?

Many specialist lenders use around 46 to 48 working weeks to annualise a day rate, allowing for holiday and gaps between contracts, though this varies by lender and is not a fixed industry standard.

Does IR35 status affect a contractor mortgage application?

It can. Some lenders treat inside IR35 contracts more like standard employment income, while outside IR35 contracts are usually assessed using the day rate method, so it is worth disclosing your status clearly to your broker.

Is a bigger deposit particularly helpful for contractors?

Yes, a larger deposit reduces the loan to value ratio and widens the pool of lenders willing to offer contractor-friendly underwriting, and can also secure a better interest rate than a minimum deposit application.