Mortgages for Contractors and Freelancers: The 2026 Guide
Working as a contractor or freelancer can make getting a mortgage feel tricky, but it doesn’t have to be. Lenders are willing to provide mortgages to anyone with verifiable income — the challenge is presenting your earnings in a way they accept. Understanding how your income is assessed is key to success.
How Lenders Assess Contractor Income
Contractor income is not the same as a standard salary, so lenders use different methods to determine affordability. Common approaches include:
Day-rate multiplied by annualised weeks: Some lenders calculate annual income based on your day-rate multiplied by 46–48 weeks.
Contracts and SA302s: Others require 12 months or more of contracts, invoices, and tax filings to assess stability.
Consideration of gaps: Breaks between contracts can reduce options or require additional documentation.
Knowing which lender uses which approach can dramatically affect how much you are able to borrow.
Common Challenges for Contractors and Freelancers
Contractors and freelancers often face obstacles such as:
Short work history or gaps between contracts
Difficulty proving a stable income
Uncertainty about which lenders accept day-rate calculations
Rejections from mainstream banks unfamiliar with non-traditional income
These challenges highlight the value of guidance from someone experienced with contractor mortgages.
Step-by-Step: Navigating the Contractor Mortgage Process
1. Gather Documentation
Collect current and previous contracts, invoices, and bank statements. Complete and accurate records make it easier for lenders to verify your income.
2. Confirm Your Income Assessment Method
Different lenders calculate affordability in different ways. Understanding which approach applies to you ensures you are matched with lenders who will view your income most favourably.
3. Match to the Right Lender
Using a broker ensures you approach lenders who understand contractor income, rather than wasting time with mainstream banks that may not.
4. Secure an Agreement in Principle (AIP)
An AIP shows how much you could borrow and demonstrates to sellers that you are a serious buyer.
5. Submit the Full Application
Provide all relevant contracts, invoices, and proof of ongoing work. Clear and organised documentation speeds up the assessment process and increases the chance of approval.
How We Help Contractors and Freelancers
We review your work pattern and income documentation to match you with lenders who understand contractor and freelance earnings. Our guidance ensures:
Accurate assessment of day-rates, contracts, or umbrella company income
Maximised borrowing potential by using the most favourable calculation method
Clarity on documentation and process without unnecessary delays
We focus on practical advice rather than theoretical calculations or generic comparisons.
Key Takeaways
Some lenders calculate income using day-rates multiplied by 46–48 weeks, while others rely on contracts and tax filings.
Gaps in work history can reduce lender options, so accurate documentation is essential.
Using a broker helps match your income type to lenders who will treat it most favourably.
With preparation, clear records, and the right guidance, contractors and freelancers can access mortgages on a similar footing to salaried applicants — maximising your borrowing potential and simplifying the process.
