IT Contractor Mortgages — Day Rate Assessed
Standard lenders often underestimate what IT contractors earn by looking at accounts rather than your day rate. We work with lenders who assess your income the right way — potentially doubling what you can borrow.
Get Contractor Mortgage AdviceWhy IT Contractors Need a Specialist Broker
If you're an IT contractor working through a limited company or umbrella, standard lenders will often look at your salary and dividends from company accounts — which, for tax efficiency reasons, may be far lower than what you actually earn. A specialist lender will instead assess your income based on your day rate multiplied by your working days, giving a much more accurate — and higher — figure.
How Day Rate Mortgages Work
Instead of reviewing your accounts, the lender takes your day rate and annualises it (typically day rate × 5 days × 46–48 weeks). This single change can dramatically increase your maximum borrowing. For example, a contractor on £600/day might be assessed as earning c.£144,000 per year rather than the £30,000 salary shown on their accounts.
We Help With
- Outside IR35 contractors via personal service companies
- Inside IR35 — umbrella and PAYE assessments
- Short contract history — some lenders accept as little as 3 months
- Gap periods between contracts
- Contractors with limited company accounts showing low salary