How Much Can I Borrow Mortgage Contractor Calculator
How much a contractor can borrow usually starts with the day rate, not with accounts. Many lenders annualise the rate by multiplying it by the days worked each week and the weeks worked each year, then apply an income multiple to that annual figure. A £500 day rate at five days a week for 46 weeks gives £115,000, and at 4.5x that supports £517,500 of borrowing.
The weeks figure is where people go wrong. Using 52 weeks overstates income, because it ignores holidays and gaps between contracts. Lenders commonly use 46 to 48 weeks, and using a realistic number avoids a nasty surprise when the lender recalculates with their own figure.
Your deposit, credit history and contract history also count. Some lenders want six to twelve months of contracting history, while others accept a new contract in a field you already know well. The annualised figure is a starting estimate, not a promise, and a specialist broker can tell you which lenders will accept your exact setup.
- Annualised income = day rate × days per week × weeks per year.
- Use 46 to 48 weeks, not 52, to allow for holidays and gaps.
- Deposit, credit history and contract history also affect the offer.
Try the free calculator to work out your own figures in seconds.