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 £103,500of 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 July 2026, a Contractor on £450/day could be offered £741,460 by Vida Homeloans but only £480,600 by Metro Bank — a £260,860 (54%) 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.
Lenders that use the contractor day-rate method
56 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% |
| Clydesdale Bank | 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. Figures are for a standard residential mortgage.
Worked example: £450/day contractor
Single applicant, 25-year repayment, 15% deposit, no debts.
| Assessment method | Income used | Indicative max lend |
|---|---|---|
| Day-rate method (× 5 × 46) | £103,500 | £465,000 |
| Self-employed — salary + dividends | £52,000 | £234,000 |
| Self-employed — 1 year net profit | £45,000 | £202,500 |
Same contractor, same day rate — the assessment method alone changes the outcome by more than £200,000. Figures are illustrative; run your own to see each lender's real number.
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.
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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