Which Lenders Accept Contractor Day-Rate Income?
A specialist contractor method annualises your day rate — day rate × 5 × 46 weeks — instead of using your limited-company accounts. For a £450/day contractor that's £103,500 of assessable income, often tens of thousands more borrowing than the self-employed route. Here's which UK lenders use it, and what each one needs. Last reviewed July 2026.
Quick answer
Most major UK lenders now use the contractor day-rate method — day rate × 5 × 46 weeks as gross annual income — with 6–12 months of contracting history. Both limited-company and umbrella/PAYE contractors qualify, and limited-company directors can pick whichever of the day-rate or self-employed method gives the higher figure. Minimum day rates are typically £200–£500. Which lender you choose can change your maximum borrowing by six figures.
Original data · our Lender Lottery study
As of August 2026, a Contractor, £450/day could be offered £654,354 by Hodge Bank but only £367,874 by Dudley Building Society — a £286,480 (78%) swing based purely on which lender they ask, with no change to income, deposit or circumstances.
Source: the Lender Lottery study — original real-engine data across UK residential lenders.
How the day-rate method works
Instead of averaging two or three years of accounts, contractor-friendly lenders take your current day rate and annualise it:
Day rate × 5 days × 46 weeks = gross annual income
46 weeks (not 52) builds in realistic downtime between contracts.
This is why contractors can often borrow far more on the day-rate method than as “self-employed” on limited-company profit — the gross figure is higher and lenders apply their normal income multiple to it. Limited-company directors can usually be assessed either way and take the better result.
Track record matters as much as the multiplier. Of the 87 lenders in our criteria dataset that publish a position on day-rate income, Kensington states no minimum contracting history at all, HSBC and Lendinvest ask for as little as 3 months, and most of the rest cluster around 12 months — while a handful of specialists, including Bath BS and Scottish BS, want longer than 12 months. See the full breakdown below.
The 46-week figure above is the common convention, not a universal rule — the multiplier is set by each lender and ranges from 41 to 52 weeks, which moves the assessed income on an identical day rate by tens of thousands of pounds. Our sister site Contractor Mortgage Guide publishes the per-lender multiplier and runs your own rate through each one.
Lenders that use the contractor day-rate method
55 UK lenders on our panel assess contractors on day rate. Criteria as published, 2026; always indicative — check your own case.
| Lender | Type | Details | Min deposit |
|---|---|---|---|
| AIB | High-street | Up to 95% LTV | 5% |
| Bank of Ireland | High-street | Up to 95% LTV, min 12 months history | 5% |
| Barclays | High-street | Up to 95% LTV, min 12 months history | 5% |
| Halifax | High-street | Up to 95% LTV, min 12 months history | 5% |
| Metro Bank | High-street | Up to 95% LTV, min 12 months history | 5% |
| Nationwide | High-street | Up to 95% LTV, min 24 months history | 5% |
| NatWest | High-street | Up to 95% LTV, min 6 months history | 5% |
| TSB | High-street | Up to 95% LTV, min 12 months history | 5% |
| Virgin Money | High-street | Up to 95% LTV, min 12 months history | 5% |
| Accord Mortgages | Building society | Up to 99% LTV, min 6 months history | 1% |
| Beverley Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Buckinghamshire Building Society | Building society | Up to 90% LTV, min 7 months history | 10% |
| Coventry Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Darlington Building Society | Building society | Up to 95% LTV (80% for London/M25 remortgage) | 5% |
| Dudley Building Society | Building society | Up to 90% LTV, min 12 months history | 10% |
| Earl Shilton Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Family Building Society | Building society | Up to 80% LTV, min 24 months history | 20% |
| Furness Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Hanley Economic Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Harpenden BS | Building society | Up to 80% LTV | 20% |
| Hinckley & Rugby Building Society | Building society | Up to 95% LTV, min 6 months history | 5% |
| Leeds Building Society | Building society | Up to 95% LTV | 5% |
| Loughborough Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Market Harborough Building Society | Building society | Up to 80% LTV, min 12 months history | 20% |
| Marsden Building Society | Building society | Up to 95% LTV, min 6 months history | 5% |
| Newcastle Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Nottingham Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Penrith Building Society | Building society | Up to 90% LTV | 10% |
| Principality Building Society | Building society | Up to 95% LTV, min 24 months history | 5% |
| Progressive Building Society | Building society | Up to 95% LTV | 5% |
| Saffron Building Society | Building society | Up to 95% LTV, min 3 months history | 5% |
| Skipton Building Society | Building society | Up to 100% LTV, min 12 months history | 0% |
| Stafford Railway Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Suffolk Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Teachers Building Society | Building society | Up to 95% LTV | 5% |
| The Melton Building Society | Building society | Up to 95% LTV (interest-only 60%, London 60%) | 5% |
| Tipton & Coseley Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Vernon Building Society | Building society | Up to 95% LTV, min 12 months history | 5% |
| Aldermore | Specialist | Up to 95% LTV, min 12 months history | 5% |
| Atom Bank | Specialist | Up to 95% LTV, min 12 months history | 5% |
| Bluestone Mortgages | Specialist | Up to 90% LTV, min 6 months history | 10% |
| Central Trust | Specialist | Remortgage and capital-raising only — does not currently lend on property purchases | 100% |
| Cynergy Bank | Specialist | Up to 90% LTV | 10% |
| Fleet Mortgages | Specialist | Up to 75% LTV, min 12 months history | 25% |
| Gatehouse Bank | Specialist | Up to 80% LTV, min 12 months history | 20% |
| Hodge Bank | Specialist | Up to 95% LTV, min 12 months history | 5% |
| Kensington Mortgages | Specialist | Up to 95% LTV, min 12 months history | 5% |
| LendInvest | Specialist | Up to 90% LTV, min 3 months history | 10% |
| Norton Home Loans | Specialist | Up to 80% LTV, min 2 months history | 20% |
| Pepper Money | Specialist | Up to 85% LTV (75% above £750k) | 15% |
| Perenna | Specialist | Up to 95% LTV, min 12 months history | 5% |
| Tandem Bank | Specialist | Up to 90% LTV | 10% |
| The Mortgage Lender | Specialist | Up to 95% LTV, min 12 months history | 5% |
| Vida Homeloans | Specialist | Up to 97% LTV, min 12 months history | 3% |
| West One Loans | Specialist | Up to 97.5% LTV, min 12 months history | 2.5% |
Minimum day rates and history requirements vary — Halifax is around £500/day, Accord from about £300/day. For the minimum deposit and adverse-credit filters on each name, see our full answer on which lenders accept contractor day-rate income. How your contract is held matters too: umbrella, own limited company, CIS and fixed-term are each read differently, and some lenders accept one but not another — see the contract type checker. Figures are for a standard residential mortgage.
Minimum contracting track record, lender by lender
Built directly from our lender criteria dataset (99 residential lenders, last verified 24 June 2026) — not a hand-picked sample. 87 of 95 lenders publish a position on day-rate income: 77 accept it, 7 refer it for individual underwriter review, and 3 require further checks. The remaining 8 don't publish a position on day-rate income at all.
| Lender | Verdict | Minimum track record |
|---|---|---|
| Kensington | Yes | No minimum stated |
| HSBC | Yes | 3 months |
| Hinckley & Rugby BS | Yes | 3 months |
| Lendinvest | Yes | 3 months |
| SBI UK | Yes | 3 months |
| Teachers BS | Yes | 3 months |
| Zephyr | Yes | 3 months |
| Cambridge BS | Yes | 6 months |
| The Mortgage Works | Yes | 6 months |
| Together | Yes | 6 months |
| Central Trust | Yes | 12 months |
| Co-operative Bank | Yes | 12 months |
| Dudley BS | Yes | 12 months |
| Earl Shilton BS | Yes | 12 months |
| Furness BS | Yes | 12 months |
| Loughborough BS | Yes | 12 months |
| Newcastle BS | Yes | 12 months |
| Nottingham BS | Yes | 12 months |
| Pepper | Yes | 12 months |
| Perenna | Yes | 12 months |
| Progressive BS | Yes | 12 months |
| Skipton | Yes | 12 months |
| The Mortgage Lender | Yes | 12 months |
| Tipton & Coseley BS | Yes | 12 months |
| Vernon BS | Yes | 12 months |
| West Bromwich BS | Yes | 12 months |
| West One | Yes | 12 months |
| Bath BS | Yes | Longer than 12 months |
| Lendco | Yes | Longer than 12 months |
| Livemore | Yes | Longer than 12 months |
| Mansfield BS | Yes | Longer than 12 months |
| Molo Finance | Yes | Longer than 12 months |
| Penrith BS | Yes | Longer than 12 months |
| Scottish BS | Yes | Longer than 12 months |
| AIB | Yes | Not published |
| Accord | Yes | Not published |
| Aldermore | Yes | Not published |
| Atom Bank | Yes | Not published |
| Barclays | Yes | Not published |
| Bluestone | Yes | Not published |
| CHL Mortgages | Yes | Not published |
| Chorley BS | Yes | Not published |
| Coutts | Yes | Not published |
| Coventry BS | Yes | Not published |
| Cumberland BS | Yes | Not published |
| Cynergy | Yes | Not published |
| Darlington BS | Yes | Not published |
| Ecology BS | Yes | Not published |
| Foundation | Yes | Not published |
| Gatehouse | Yes | Not published |
| Generation Home | Yes | Not published |
| Halifax | Yes | Not published |
| Harpenden BS | Yes | Not published |
| Hodge | Yes | Not published |
| Interbay | Yes | Not published |
| LG Home Finance | Yes | Not published |
| Landbay | Yes | Not published |
| Leeds BS | Yes | Not published |
| Marsden BS | Yes | Not published |
| Metro Bank | Yes | Not published |
| NatWest | Yes | Not published |
| Nationwide | Yes | Not published |
| Newbury BS | Yes | Not published |
| Octopus Real Estate | Yes | Not published |
| Precise | Yes | Not published |
| Principality | Yes | Not published |
| Roma Finance | Yes | Not published |
| Saffron BS | Yes | Not published |
| Santander | Yes | Not published |
| Stafford BS | Yes | Not published |
| Suffolk BS | Yes | Not published |
| Swansea BS | Yes | Not published |
| TSB | Yes | Not published |
| Tandem | Yes | Not published |
| UTB | Yes | Not published |
| Vida | Yes | Not published |
| Virgin Money | Yes | Not published |
| Melton BS | Refer | 3 months |
| Bank of Ireland | Refer | 12 months |
| Beverley BS | Refer | 12 months |
| Buckinghamshire BS | Refer | 12 months |
| Family BS | Refer | Longer than 12 months |
| Shawbrook | Refer | Not published |
| Skipton International | Refer | Not published |
| Market Harborough BS | Check | Longer than 12 months |
| HTB | Check | Not published |
| Rely | Check | Not published |
“Refer” and “Check” mean the lender considers day-rate income case-by-case rather than as standard — not a decline. “Not published” means the lender accepts day-rate income but our dataset has no explicit minimum track record on file for them; ask a broker for the current figure. Sourced from our lender criteria dataset, generated 28 July 2026, criteria last verified 24 June 2026.
Tips for contractor applications
- Keep a copy of your current signed contract and any extensions — lenders want to see the day rate and the end date in writing.
- Avoid gaps over 6 weeks in the run-up to applying. If a gap is unavoidable, a signed forward contract can reassure the underwriter.
- If you're a limited-company director, ask to be assessed on the day-rate method — it usually beats salary + dividends.
- First-time contractor? Some lenders accept a move straight from an employed role in the same field with a signed contract, so don't assume you need 12 months.
- Choose the lender before you apply — day-rate minimums and history rules vary widely, and the wrong choice can halve your figure.
Want to know what the salary-and-dividends route would actually give you before you decide? Our self-employed income calculator shows the income figure each lender would use from your accounts — compare it with your day rate × 5 × 46 to see which route wins.
Frequently asked questions
How is contractor day-rate income calculated for a mortgage?
Lenders using the contractor method take your day rate × 5 days × 46 weeks to get a gross annual income. The 46 weeks (rather than 52) allows for realistic downtime between contracts. A £450/day contractor is assessed on £103,500 — often far more than their limited-company accounts would show.
Do I need a limited company to use the day-rate method?
No. Most lenders accept both limited-company contractors and umbrella / PAYE contractors on the day-rate method. Limited-company directors can usually choose between the day-rate method and the self-employed (salary + dividends or net profit) method, whichever gives the higher figure.
Is there a minimum day rate for a contractor mortgage?
Most lenders set a floor of roughly £200–£500 per day, or a minimum £50,000 annualised. Halifax requires around £500/day; Accord accepts from about £300/day. Below the floor, some lenders fall back to assessing you as self-employed on accounts.
How much contracting history do lenders need?
Many mainstream lenders now accept 6–12 months of contracting history, and some will consider first-time contractors with a relevant employed background and a signed contract. Short gaps of 2–4 weeks between contracts are fine; gaps over 6 weeks can prompt questions, and some lenders want to see two back-to-back contracts to evidence continuity.
See your day-rate borrowing across every lender
Enter your day rate and contract history. We'll show each lender's real maximum side-by-side, so you pick the one that annualises your income in full.
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