Contractor mortgages in Leeds
Get a mortgage that reflects what you really earn
If you contract for a living, you have probably had the frustrating experience of a high-street lender looking at your accounts, seeing a modest salary and a few dividends, and offering you far less than you actually earn. The good news is that it does not have to be that way. A whole set of specialist lenders will look at your day rate instead, and that can change the picture completely.
Below explains what a contractor mortgage is, how lenders work out what you can borrow, what they look for, and how our mortgage advisers in Leeds can help you get the right deal. No jargon and no pressure, just a clear view of your options and how to protect your mortgage once secured.
What is a contractor mortgage?
A contractor mortgage is not a separate product; it is a normal mortgage arranged with a lender who understands contract-based income. Instead of judging you on company accounts or your salary and dividends, these lenders assess your borrowing on your contract rate. For many contractors that means being able to borrow considerably more than a standard application would allow.
It suits people who work on a contract basis rather than in permanent employment, whether that is through a limited company, an umbrella company or directly, across fields such as IT, engineering, finance, construction and healthcare.
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How do contractor mortgages work?
The difference comes down to how your income is assessed. A standard lender may treat you as self-employed and average your accounts over the last two or three years, which often understates what you really earn (MoneyHelper). A contractor-friendly lender instead annualises your day rate. The common approach is to take your daily rate, multiply it by five days a week and then by around 46 to 48 weeks a year, which allows for time between contracts. Lenders then apply an income multiple to that figure to work out your maximum loan.
Because that calculation is based on your earning power rather than how you choose to pay yourself for tax, it frequently produces a higher, and fairer, borrowing figure. Exactly which lender is best for you depends on your contract, your field and your history, which is where advice makes the biggest difference.
Who counts as a contractor ?
Lenders use the term broadly. You are likely to be treated as a contractor if you work in any of these ways:
- •Through your own limited company, sometimes called a personal service company, on day-rate contracts.
- •Through an umbrella company that employs you and invoices your client.
- •On a fixed-term contract with an end date.
- •In construction under the Construction Industry Scheme (CIS).
- •As a day-rate professional in fields such as IT, engineering, finance or healthcare.
What lenders look for
Contractor-friendly lenders each have their own criteria, but the common themes are:
- •A track record of contracting, often around 12 months in your field, though some accept a current contract with time left to run.
- •A current contract, or a recent one, showing your day rate.
- •A reasonable deposit, as with any mortgage.
- •A tidy credit history, though not necessarily a perfect one.
Your status under the off-payroll working rules, known as IR35, can also affect how a lender views your income, so it is worth understanding where you stand (GOV.UK). An adviser can steer you toward lenders whose criteria fit your particular set-up.
How much could you borrow?
As a guide, once your day rate is annualised, lenders typically apply an income multiple of around four and a half to five times that figure, in the same way they would for an employed applicant. For many contractors this works out higher than an accounts-based assessment, sometimes considerably so. It is only ever a guide, though: the actual figure depends on the lender, your deposit, your credit history and your wider circumstances, so treat any headline number as a starting point for a proper conversation rather than a promise.
How our Leeds mortgage advisers can help
Feel Good Financial has been advising clients across Leeds and Yorkshire since 2012, and in 2025 we helped arrange over £251 million in mortgage lending. We know which lenders genuinely understand contractors and how each one assesses day-rate income, so we can save you the frustration of being underlent or turned away by a lender that simply does not get how you work.
When you speak to one of our advisers, we start with how you contract and what you earn, then match you to lenders whose criteria fit, explaining your options in plain English. We handle the paperwork and present your income in the way that reflects your true earning power. No jargon, no hard sell, just clear help getting the right mortgage whether it’s as a first-time buyer or you are looking to remortgage.
Ready to talk to a Leeds mortgage adviser?
Contracting and want a mortgage that reflects what you really earn? Book a free, no-obligation chat with one of our Leeds advisers. We will explain how much you could borrow on your day rate and match you to the right lender, with no pressure.
Let’s get started.
Contractor mortgage FAQs
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Yes, plenty of lenders are happy to help contractors, and specialist ones will assess you on your day rate rather than your company accounts, which often means you can borrow more. The key is applying to the right lender for how you work.
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Many lenders look for around 12 months in your field, but this is not universal. Some will consider you with a shorter track record if you have a current contract with time left to run, or relevant employed experience in the same area. It is worth checking before you assume you need to wait.
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Yes, lenders can work with contractors paid through an umbrella company and those in construction under the Construction Industry Scheme (CIS), though the documents they want and the way they assess you can differ. Our advisers will know which lenders suit each set-up.
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Contractor-friendly lenders usually annualise your day rate, commonly day rate times five days times around 46 to 48 weeks, then apply an income multiple. This is often more generous than an assessment based on salary and dividends.
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Not necessarily. Contractors can access the same sort of deposit levels as other borrowers; the difference is mainly in how your income is assessed, not the deposit required. Your circumstances and the lender will determine what is needed.
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Important Information:
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Changes in interest rates may affect your monthly repayments. Ensure you understand the terms and risks before proceeding, There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £695 for a purchase application and £300 for a remortgage.