Mortgages for High-Earning Contractors – Lenders Who Understand Your Income

High day rate contractors often out-earn their salaried peers, but when applying for a mortgage their income can be undervalued — sometimes by hundreds of thousands of pounds. The reason is simple: not every lender recognises the unique way contractors are paid.

Some banks still rely on payslips or company accounts, which can make a successful applicant look far less creditworthy than they really are. Others, however, have adapted their policies to annualise day rates, giving contractors access to the borrowing they truly deserve.

If you’re contracting through a limited company or umbrella, you may also want to explore our guides on Contractor Mortgages and Umbrella Company Mortgages , which cover the finer details of each setup.

This article zooms in on high-value contractors — typically earning £500+ per day (£75,000+ annually) — and highlights which lenders are most supportive, with real-world examples of what a difference the right bank can make.

Example 1 – IT Consultant on £500 per Day

Case: Michael, an IT contractor in London, operates via his limited company and bills £500 per day.

• Annualised income (Halifax/NatWest approach): £500 × 5 days × 46 weeks = £115,000
• Borrowing range: 4.5–5.5× income = £517,000–£632,000

When he applied directly to a lender that ignored day rates, affordability was based on his £42,000 salary/dividends. His borrowing was capped at £190,000 — less than a third of what contractor-friendly lenders allowed.

Example 2 – NHS Doctor on Fixed-Term Contract

Case: Sofia, a junior doctor, had a 12-month NHS contract.

• NatWest treated her as a permanent employee, using her contract income in full.
• She was able to borrow at 5× her income, on par with a colleague in a permanent role.

By contrast, a lender such as Santander would have relied only on payslips, capping borrowing at a much lower level.

Example 3 – Accountant Through an Umbrella

Case: Daniel, a contractor accountant, works through an umbrella company and earns £700 per day.

• Annualised income (Nationwide/Bank of Ireland method): ~£161,000
• Borrowing power: Up to £885,000 at 5.5× income

Had he gone to HSBC, affordability would have been restricted to his umbrella payslips, cutting more than £250,000 off his potential borrowing.

Contractor-Friendly Lenders

The following banks consistently support day rate contractors by assessing income fairly:

• Halifax – often lend from day one of the first contract, provided there’s relevant industry experience. Particularly good for IT and finance contractors.
• NatWest – attractive for higher earners and those with larger deposits.
• Nationwide – sometimes stretch to 6× income for eligible professionals and first-time buyers.
• Bank of Ireland – known for flexibility and a pragmatic approach where the CV supports earnings.

Lenders Less Aligned with Contractors

A number of lenders still apply restrictive assessments:

• HSBC – usually assess umbrella workers on payslips alone.
• Santander – often insist on limited company accounts, reducing affordability to salary plus dividends.
• Other mainstream banks – many continue with traditional underwriting, which can undervalue contractor income.

Other Factors That Influence Borrowing

Even with the right lender, these details can affect the amount you’re offered:

• Profession – IT, medical, and financial contractors are generally lower risk in lenders’ eyes.
• Contract length – most banks want 3–6 months remaining, though Halifax may accept less with evidence of renewals.
• Track record – a strong CV in the same industry is highly valuable.
• Gaps between contracts – usually tolerated up to 6–12 weeks per year.
• IR35 – outside IR35 gives greater flexibility, but many lenders still work with inside IR35 contractors if income is stable.

Final Thoughts

For high-value contractors earning £500+ per day, choosing a lender that recognises day rate income can mean an extra £300,000+ in borrowing power.

• Go with Halifax, NatWest, Nationwide, or Bank of Ireland if you want affordability assessed on your contract.
• Avoid lenders like HSBC or Santander if you don’t want your income understated.

Ultimately, securing the right mortgage comes down to working with a bank (or broker) that understands contracting — and ensures your borrowing reflects your true earning potential.