Lenders don't just look at your salary. As a contractor, your day rate is your income — and specialist lenders will lend on that basis.
This calculator gives an indicative figure only. Actual affordability depends on lender criteria, credit profile, existing commitments, and deposit size.
Multiply your day rate by the number of working days in a year. Specialist lenders typically use 46–48 weeks, reflecting realistic contracting patterns.
The annualised figure is multiplied by the lender's income multiple — typically 4× to 5× depending on the lender, deposit size, and your credit profile.
The lender checks that repayments remain affordable if interest rates rise. This is a regulatory requirement and applies to all mortgages, not just contractors.
Most specialist lenders who underwrite on day rate ignore salary and dividends entirely and use only the contract rate. A £400 per day rate annualises to approximately £88,000 at 46 weeks — typically well above what a contractor draws as personal income. This is more generous than traditional PAYE assessment for most contractors, and it's the key reason why going to the right lender matters so much.
Your day rate is the primary driver of the annualised income figure. A higher rate directly increases the borrowing ceiling — which is why using a lender that assesses on day rate rather than accounts income matters so much.
Lenders want confidence that the income is sustainable. A contract with several weeks remaining, combined with a track record of renewals or back-to-back contracting, supports the application significantly.
A larger deposit reduces lender risk and can unlock better rates and higher income multiples. Lenders at 75% LTV or below typically offer the most favourable contractor criteria.
A clean credit file means more lenders to choose from and access to the most competitive rates. Adverse credit doesn't necessarily prevent a mortgage, but it reduces the pool of lenders and can affect the multiple available.
| PAYE employee | Day rate contractor | |
|---|---|---|
| Income used | Basic salary | Day rate × days × weeks |
| Evidence required | Payslips / P60 | Contract + bank statements |
| Lender pool | All high-street lenders | Specialist lenders |
| Typical multiple | 4–4.5× | 4–5× |
Specialist lenders treat a rolling contract as strong evidence of sustained income. The combination of a consistent day rate, a track record of renewal, and a current contract is often regarded as a lower risk profile than a PAYE employee on a fixed-term employment contract.
The calculator above gives you an indicative figure. For an accurate picture based on your specific day rate, contract, deposit, and credit profile — speak to a specialist directly.
Chris
CII CF1 · CF6 · ER1 — Contractor mortgage specialist
30 years inside major UK lenders. All content on Day Rate Finance is written or reviewed by a qualified specialist with direct lender relationships and broker-level knowledge of contractor mortgage criteria.
Last reviewed: June 2026