Your borrowing capacity as a contractor depends on your day rate, the lender's assessment method, your income multiple, deposit size, and existing financial commitments. Lenders typically annualise your day rate to determine how much you can borrow — use the calculator on this page for a quick estimate, or speak to one of our advisers for a precise figure based on your full circumstances.
Before applying for a contractor mortgage, make sure you have the following core documents ready. These are required by almost every lender regardless of your income structure.
A valid passport or photocard driving licence is required to verify your identity and satisfy lender compliance requirements.
Provide a recent utility bill, bank statement, or council tax statement dated within the last three months.
Most lenders require three to six months of personal bank statements showing your regular income deposits and day-to-day financial activity.
You must provide evidence of your deposit funds, including bank or savings account statements showing the money is available.
If any portion of your deposit is being gifted by a family member, a signed gifted deposit letter will usually be required.
Lenders may request additional evidence showing how your deposit was accumulated, particularly for larger deposits or recently transferred funds.
For contractors using day rate annualisation assessment: your current contract document showing your name, the client name, the day rate, the start date and the end date or rolling arrangement.
A brief CV or work history for the last two to three years confirming sector continuity. For lenders who additionally require company financial information: your last one to two years of company accounts and your SA302 and tax year overview, available from your HMRC personal tax account.
For inside IR35 contractors assessed on PAYE income: your most recent three payslips showing the PAYE deductions and net pay. Your P60 for the most recent completed tax year. Your contract document showing the engagement rate and IR35 status.
For inside IR35 contractors where the lender will assess on gross contract value: the same contract document combined with evidence of the engagement rate. Some lenders will require a letter from the agency or client confirming the gross engagement rate.
For umbrella company workers: your most recent three to six months of payslips from the umbrella company, showing the gross assignment rate, employer’s NI deduction, umbrella margin, holiday pay and net pay. An assignment schedule or confirmation of your current engagement from the umbrella company or agency.
For lenders who assess on gross contract value before umbrella deductions: confirmation of your assignment rate from your agency or umbrella company in addition to payslips.
For CIS contractors: CIS payment deduction statements for the last twelve months, obtainable from your main contractor or from your HMRC CIS subcontractor account. Bank statements for the last six months confirming receipt of CIS net payments. Proof of HMRC CIS registration.
For sole traders: SA302 forms and corresponding HMRC tax year overviews for the last two completed tax years. Some lenders will also accept an accountant’s certificate — a signed statement from a qualified accountant confirming your income over a specified period.
Once you have an offer accepted on a property, the following are needed: the property address and asking price, details of your solicitor, and confirmation of any survey you are commissioning.
For new build properties: the developer’s name, the build completion date, and details of any developer incentives. For buy to let applications: a rental valuation from a local letting agent confirming the expected monthly rent.
Most lenders require bank statements dated within the last three to four months. Statements from further back than this may be accepted as supplementary evidence but are unlikely to satisfy the primary income verification requirement.
This is more common than you might expect, particularly for contractors paid weekly or monthly rather than by day. In this case, we can calculate an equivalent day rate from the contract value and term, or the agency or client can provide a confirmation letter. We guide you through this before submitting the application.
Most lenders now accept digital copies — PDFs or clear photographs — of documents submitted through a broker portal. Some require certified copies for identity documents. We clarify the format requirements for each lender before submission.
No — you can have an initial conversation and receive a recommendation before gathering any documentation. Once we recommend a lender and you decide to proceed, we tell you precisely what is needed and help you gather it in the right format.
For lenders using day rate assessment, unfiled accounts are generally not a barrier — the mortgage is assessed on your contract rather than your accounts. For accounts-based assessment, you will need the most recently filed accounts.