Your contract rate is your income. Specialist mortgage advice for civil, mechanical, electrical, and all engineering contractors.
Engineering contractors typically draw a modest salary from their limited company and take the rest as dividends — a tax-efficient structure that high-street lenders are not built to assess. Banks look at the salary figure and offer a mortgage based on that, ignoring the contract income that generates the company’s profits.
Engineering day rates range from £300/day for graduate-level contracts to £900/day or more for senior project engineers, principal engineers, and engineering directors. High-street assessment can cut effective borrowing to a fraction of what the contractor’s income justifies.
Specialist lenders take the contract day rate, annualise it, and apply an income multiple. This produces a borrowing figure that reflects what you actually earn — not what you choose to draw as salary.
Day rate × 5 days × 46 weeks = annualised income. £450/day = £103,500.
Annualised income × income multiple (4–5×). £103,500 × 4.5 = £465,750 indicative borrowing.
Current contract + 3–6 months of bank statements showing contract payments. No accounts required with the right lender.
Figures are illustrative. Actual borrowing depends on lender criteria, deposit, credit profile, and individual circumstances.
→ Calculate your borrowingEngineering contracts often involve site work across multiple locations. This doesn’t affect the mortgage application but the contract must clearly show the employing entity and day rate.
Engineering contracts are sometimes structured around project milestones rather than a fixed end date. Lenders assess on contract history and track record in these cases.
Most engineering contractors working outside IR35 through a limited company access day rate assessment. Inside IR35 contracts follow a different evidence path. See our IR35 mortgage guide.
Some engineering contractors work on international projects. UK-based lenders can accommodate foreign income in some circumstances, though this requires specialist handling.
Yes. Specialist lenders assess engineering contractors on their contract day rate rather than salary. A £450/day engineering contractor annualises to £103,500 and can typically borrow up to £465,750 at a 4.5× income multiple.
Not with the right lender. Day rate mortgage lenders assess engineering contractors from the current contract and bank statements. Contract history of 12 months or more is typically sufficient.
Engineering project contracts are well understood by specialist lenders. A track record of consecutive project engagements is as strong as a single long-term contract in most lenders’ eyes.
Day rate lenders ignore salary and dividends entirely and use only the contract rate. This is typically more beneficial for contractor directors.
No obligation. We understand engineering contract structures.
Book a free call →Chris
CII CF1 · CF6 · ER1 — Contractor mortgage specialist
30 years inside UK mortgage lending. Chris works with engineering contractors across civil, mechanical, electrical, and all technical disciplines.
Page reviewed July 2026.