Being a contractor can mean better pay and more freedom, but it also comes with challenges when applying for a mortgage. Many banks still favour salaried applicants and often reject perfectly capable contractors simply because their income doesn’t fit the mould.
At Mortgage Knight, we work with specialist lenders who understand contractors, freelancers, and self-employed professionals—and we know how to present your income so you can secure the mortgage you deserve.
We arrange mortgages for:
If you’re paid a day rate, invoice monthly, or juggle multiple clients—we know how to get your income recognised.
Most traditional lenders still:
We say no to one-size-fits-all lending. Our lenders assess your income based on your contract, not your payslip or P60.
Most traditional lenders still:
Depending on your setup, we can structure your application in a number of ways:
No need for tax returns — most lenders use your gross contract value. On a day rate of £450, borrowing is typically based on £103k–£117k annual income, with 4.5–5.5× multipliers applied. This gives significantly stronger affordability than using company accounts.
You’ll typically be assessed as employed, but many lenders will work off your gross contract value. Some will deduct umbrella costs and employer’s NI, which can reduce your assessed income — but we know who offers the fairest treatment.
Most contractor-friendly lenders assess income based on your gross contract value, not just your tax returns. A common calculation is your day rate × 5 days × 46–52 weeks, then multiplied by 5 to 5.5x to determine borrowing capacity
We’ll help gather, review, and present everything properly to the lender.
Status: Alex had just switched from permanent employment to contracting. He’d only been contracting for 4 months when his bank declined his mortgage application.
Challenge: We used his current contract and day rate, along with projected annual income, to place him with a contractor-friendly lender.
Solution: Alex secured a £375,000 mortgage at 85% LTV with no issues—even with a short contracting history.
Status: Priya was paid weekly through an umbrella company and worked regular shifts across multiple trusts. Lenders were confused about her income consistency.
Challenge: We used her last 3 months' umbrella payslips, remittance advice, and bank statements to demonstrate stability.
Solution: She was approved for a £290,000 mortgage at a competitive rate.
Status: John worked on various commercial construction sites with short contracts and occasional 1–2 week breaks between roles. His bank refused due to "gaps in employment."
Challenge: We worked with a specialist lender who understood the nature of contracting and used 12 months of income history to average his earnings.
Solution: John secured a £225,000 mortgage with a 10% deposit, and peace of mind.
A: Yes. Some lenders will accept contractors with as little as 1–3 months of history, especially if you’ve worked in the same industry before.
A: Yes. We have lenders who will assess you using your gross contract value, rather than needing 2–3 years of accounts.
A: Absolutely. We work with freelancers, creatives, and gig-economy workers, even if your income is seasonal or irregular.
A: No problem. We’ll use your payslips, remittance advice, and contract to evidence affordability.
A: Yes. We help contractors paid in INR, USD, EUR, and more—especially in tech, pharma, and engineering sectors.
The team made everything easy, even with my complicated income. I'd been turned away before, but not here.
