Updated: April 17, 2024
Contractor Mortgage Calculator
Want to know how much you can borrow on a contractor mortgage? You can access a contractor mortgage calculator here as well as bespoke advice.
No impact on your credit score
The way mortgage lenders calculate the maximum amount a contractor can borrow will differ depending on whether the borrower is an employed or self-employed contractor.
Our calculator below lets you choose between both options to get an idea of your maximum borrowing.
Contractor Mortgage Affordability Calculator
Our contractor mortgage calculator will tell you how much you can borrow, whether you work in an employed or self-employed capacity. Select your trading style below, enter the relevant details about your income and our calculator will do the rest.
You could borrow up to
Most lenders would consider letting you borrow
This is based on a multiple of 3-4.5 times your income, a standard calculation used by the majority of UK mortgage lenders. You should speak to a mortgage broker for bespoke calculations if you have been contracting for less than 12 months, your contract is coming to an end, or there is uncertainty around your long-term employment.
This is based on a multiple of 3-4.5 times your income, a standard calculation used by the majority of UK mortgage lenders. You should speak to a broker for bespoke calculations if you’ve been self-employed for less than 2-3 years, have declining profits or fluctuating income.
Some lenders would consider letting you borrow
This is based on 5 times your income, a calculation only some lenders are willing to offer. You may struggle to find a lender who will offer this income multiple to an employed contractor without the help of a broker, and you should seek advice from one regardless if there is any uncertainty around your employment situation.
This is based on 5 times your income, a calculation only some lenders offer. You might need a broker to access this salary multiple and should take advice from one regardless if you’ve been self-employed for less than 2-3 years, have declining profits or fluctuating income.
A minority of lenders would consider letting you borrow
Only a small number of options are available for employed contractors who want to borrow based on this salary multiple. Few UK mortgage lenders offer mortgages based on x6 income under any circumstances, and you’ll almost certainly need the help of a specialist mortgage broker who knows this corner of the market inside out to access them.
Only a small number of options are available for self-employed contractors who want to borrow based on this salary multiple, as few mortgage providers are willing to offer 6 times salary deals. You’ll almost certainly need the help of a mortgage broker to borrow this amount.
Get Started with an expert broker to find out exactly how much you could borrow.
The following topics are covered below...
Why use this calculator?
Not all mortgage calculators are tailored to contractors, but this one is. If you’re an employed contractor you can enter your monthly income to get an idea of your borrowing potential. If you’re self-employed, you can get a projection based on your day rate, as most mortgage lenders will apply a multiple to this to work out what size mortgage you qualify for.
The main benefits of this calculator are…
- That it can be used to get a rough idea of the mortgage size you’d qualify for
- Its calculations can help you with planning and budgeting
- It is specifically tailored to contractors and the way they trade
One thing to keep in mind, however, is that all mortgage calculators can only offer you ballpark figures when it comes to maximum borrowing, and the amount you qualify for can vary from one mortgage lender to the next.
For bespoke calculations and personalised advice based on them, you should speak to a mortgage broker who specialises in arranging deals for contractors.
Get Started with a Broker
Maximise your chance of approval with specialist advice from a mortgage expert
Will the calculations be different for a buy-to-let mortgage?
Yes. Whether you trade as a contractor or are in full-time employment, the way your buy-to-let mortgage borrowing is calculated will be the same. This will be based on the property’s projected rental income, rather than your day rate or monthly salary.
You can read more about how buy-to-let borrowing works and access a mortgage calculator tailored for this purpose in our complete guide to buy-to-let mortgages.
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We want you to have complete confidence in our service, and get the best chance of securing your mortgage. We guarantee to get your mortgage approved where others can’t – or we’ll give you £100*
What about limited company traders?
If you’re the director of a limited company, then the calculations can be different since mortgage lenders will use your basic salary plus dividend income to work out your maximum borrowing.
Our self-employed mortgage calculator below has a setting for limited company directors. Select ‘Company Director’ from the drop-down menu on the left to get started with your calculations.
Self-Employed Mortgage Calculator
This calculator can work out your maximum mortgage borrowing if you're self-employed. Select your trading style from the drop-down menu, then enter your income and outgoings, and our calculator will do the rest.
You could borrow up to
Most lenders would consider letting you borrow
This is based on 4.5 times your net profit or the total income declared. To borrow more than this, you will need to speak to a mortgage broker who specialises in self-employed borrowers
This is based on 4.5 times your share of the partnership's net profit or total income declared. To borrow more than this, you will need to speak to a broker who specialises in self-employed borrowers
This is based on 4.5 times your share of the net profit/salary plus dividends, or total income declared. To borrow more than this, you will need to speak to a broker who specialises in self-employed borrowers.
This is based on 4.5 times your income. To borrow more than this, you will need to speak to a broker who specialises in self-employed borrowers.
Some lenders would consider letting you borrow
This is based on 5 times your net profit or your total income recieved. This income multiple is often unavailable to borrowers who aren't applying through a mortgage broker.
This is based on 5 times your share of the partnership's net profit or your total income recieved. This income multiple is often unavailable to borrowers who aren't applying through a mortgage broker.
This is based on 5 times your share of the net profit/salary plus dividends, or your total income recieved. This income multiple is often unavailable to borrowers who aren't applying through a mortgage broker.
This is based on 5 times your income. This income multiple is often unavailable to borrowers who aren't applying through a mortgage broker.
A minority of lenders would consider letting you borrow
This is based on 6 times your net profit or the total income declared. This income multiple is only available under specific circumstances and is usually only accessible via a broker.
This is based on 6 times your shares of the net profit or total income declared. This income multiple is only available under specific circumstances and is usually only accessible via a broker.
This is based on 6 times your share of the net profit/salary plus dividends, or total income declared. This income multiple is only available under specific circumstances and is usually only accessible via a broker.
This is based on 6 times your income. This income multiple is only available under specific circumstances and is usually only accessible via a broker.
Now that you have a rough idea of your maximum borrowing, get in touch to speak to a mortgage broker who can provide bespoke calculations and access to the best rates and deals.
Reviews
Great- would recommend ????????
Great, 5 star efficient service. Would recommend
Allen
Excellent service as a contractor
Excellent service from start to finish. As a contractor I was having real problems getting a mortgage through normal lenders and other brokers.
Within a week or two Tim had firm offer for us...
Luke Canton
Very helpful for contract workers
They were the only ones out there who seemed to be interested in our particular mortgage need – we’re both on short term contracts.
Ashley, the advisor assigned to us, was invalu...
Adrian
Why use Online Money Advisor?
After you’ve used our calculator to get a rough idea of your affordability, your next step should be to use our free broker-matching service to find a mortgage advisor who specialises in contractor mortgages. They can provide bespoke calculations and personalised advice.
With their help, your chances of landing the best contractor mortgage deal available will increase. Their knowledge, experience and lender contacts could make all the difference here.
Call 0808 189 0463 or make an enquiry and we’ll match you with a mortgage broker who specialises in securing exclusive rates and deals for contractors today.
FAQs
If the other person you are applying with trades the same way you do, simply combine your income and enter the combined total into the calculator. If one applicant is self-employed and the other employed, carry out separate calculations and add the totals together.
Read our article on joint mortgages to find out more.
Ask Us A Question
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.
Pete Mugleston
Mortgage Expert, MD
About the author
Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!
