HSBC Launches Automated Remortgages — But Contractor Day-Rate Cases Still Need a Specialist

What HSBC's DART rollout actually does

HSBC has adopted LMS's DART (Decisioning and Automated Remortgage Technology) platform to automate the conveyancing decisioning process for remortgage cases. DART assigns each case to one of three tracks: fully automated, partially automated, or manual — based on the complexity and risk profile of the application.

For the most straightforward cases — PAYE borrowers with stable income, clean credit history, standard residential properties — DART can route the conveyancing decision automatically, reducing processing time and removing manual handling from the early stages of the remortgage. For those borrowers, this is a genuine improvement: faster decisions, less friction, clearer timelines.

Why contractor remortgages fall outside automated workflows

The operative phrase in HSBC's announcement is "the most clear-cut and low-risk cases." Contractor remortgages are, by definition, not among them. Day-rate income assessment — calculating income as day rate × 5 days × 46 or 48 weeks — is a non-standard methodology that requires human underwriting review. It cannot be reduced to a payslip check or a simple income multiple calculation.

The specific contractor remortgage scenarios that automation cannot handle include: the day rate × 5 × 46-week multiplier income calculation itself; treatment of gaps between contracts; dividends plus salary blended income from a limited company; IR35 status and its effect on how income is classified; and the document set required to evidence a contracting history rather than a conventional employment record.

HSBC's existing process for contractor and self-employed remortgage applicants already requires either a phone or branch appointment for manual income review. The DART rollout is unlikely to change this for contractor cases — the automation applies to the conveyancing decision layer, not to HSBC's income assessment underwriting policies.

HSBC's contractor remortgage criteria

HSBC does have a contractor pathway. For borrowers with 24 or more months of trading history, they can assess on accounts. For contractors with a current contract and an established day rate, HSBC can assess without requiring two full years of self-employed accounts — using the current contract and day rate instead. This makes them usable for contractors who are relatively new to limited company working.

However, HSBC's policy is not the most generous in the market. Lenders including Halifax, Clydesdale, Skipton, Kensington and Kent Reliance have established contractor day-rate desks whose underwriters have processed hundreds of contractor remortgage cases and know the documentation requirements inside out. The difference in processing speed and approval probability between a lender with a genuine contractor specialism and one that handles contractor cases occasionally is significant.

What to prepare for a contractor remortgage

A well-prepared contractor remortgage application includes: your two most recent contracts (or current contract if in force), a CV evidencing your contracting history, proof of limited company trading (incorporation documents, confirmation statement), three months of personal and business bank statements, and an accountant's reference if you have one. If you are between contracts, the lender will want evidence of your contracting history and an explanation of the gap.

Submitting to the right lender — one whose underwriters understand contractor income and process these cases routinely — is more important than the lender's headline rate. A marginally higher rate from a contractor-specialist lender who approves your application is better than a marginally lower rate from a high-street lender whose manual underwriter refers and declines.

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Category: Lender Rate Cuts & Product Updates