Operating through a limited company? Forget complex dividend calculations and low salaries. Our specialist lenders use contract-based underwriting – they assess your mortgage based purely on your contract day rate.
Limited company contractor mortgages require specialist mortgage brokers who understand director loan accounts, dividend planning, and complex company structures that confuse traditional mortgage lenders.
UK limited company contractor mortgage lenders use contract-based underwriting to assess your gross day rate, avoiding the complexity of traditional self-employed mortgage assessment methods.
Many limited company contractors use director loan accounts for tax efficiency. Specialist limited company contractor mortgage brokers understand these arrangements and know which lenders accept them.
Operating through a limited company demonstrates professional contractor status. Specialist limited company contractor mortgage lenders often offer enhanced terms recognizing this professional structure.
Our Watford mortgage broker specialists help first-time buyers access
5% deposit mortgages for Watford properties
Help to Buy schemes for new builds in Watford
Shared ownership opportunities across Hertfordshire
Government first-time buyer support schemes
Comprehensive Watford remortgage advice including:
Better mortgage rates for existing Watford homeowners
Equity release from Watford property values
Debt consolidation remortgages
Switch to fixed rates for payment security
Specialist buy-to-let mortgage advice for:
Watford rental properties with strong yields
Student accommodation near University of Hertfordshire
HMO mortgages for multi-let properties
Portfolio landlord financing solutions
Advanced mortgage solutions for:
Self-employed mortgages for Watford business owners
Contractor mortgages for high-earning professionals
Bad credit mortgages for credit-impaired applicants
Large mortgages for premium Watford properties
Traditional Self-Employed vs Contract-Based Assessment
Traditional Limited Company Mortgage Assessment:
Contract-Based Limited Company Mortgage Assessment:
Limited company contractor mortgages using contract-based underwriting focus on gross day rate earning capacity rather than tax-efficient salary and dividend extraction methods, typically providing 2-3x higher borrowing capacity.
No Company Accounts Required for Contract-Based Assessment
Unlike traditional limited company mortgages requiring complex account analysis, contract-based limited company contractor mortgages assess current contract earning capacity using minimal documentation.
Client: David, IT Consultant
Setup: Limited company, £12,570 salary, rest via dividends/loans
Day Rate: £800/day through company contracts
Traditional Assessment: ~£45,000 income (salary + net dividends)
Contract-Based: £800 × 5 × 48 = £192,000 annual income
Halifax Result: £864,000 borrowing vs £202,500 traditional method
Client: Emma, Business Analyst
Setup: Just incorporated, no filed accounts yet
Day Rate: £650/day, moved from an umbrella company
Challenge: No company trading history for traditional assessment
Solution: Nationwide used contract rate, ignored company age
Result: £552,500 borrowing capacity from day one of the company
Client: Rob & Lisa, Development Partners
Setup: 50/50 company ownership, both working directors
Day Rates: £700/day each through the company
Application: Joint mortgage using both contract rates
Leeds BS Assessment: Combined £644,000 annual income
Result: £2.9m joint borrowing capacity for premium property
Structure: Sole director and shareholder operating through a limited company Assessment: Straightforward contract-based assessment using director's day rate Mortgage Advantage: Fastest processing due to simple company structure Lender Preference: Most limited company contractor mortgage lenders prefer this structure
Structure: Director holds majority shares with spouse/partner minority shareholding Tax Planning: Common arrangement for dividend tax efficiency Mortgage Assessment: Primary director's contract rate assessed for borrowing capacity Lender Understanding: Specialist limited company mortgage lenders accept this structure
Structure: Business partners sharing company ownership and directorship Joint Applications: Both directors' contract rates combined for joint mortgage applications Assessment: Individual contract rates are assessed separately or combined Complexity: Requires specialist limited company contractor mortgage expertise
Holding Companies: Parent companies owning subsidiary contracting entities Multiple Companies: Directors operating several limited companies Investment Structures: Companies with multiple income streams beyond contracting Specialist Assessment: Contract-based underwriting focuses on personal contract earning capacity
Limited company contractors often get preferential treatment from specialist lenders. Your professional structure demonstrates business acumen and long-term planning.
Contract-based underwriting eliminates the traditional complexity that penalised limited company contractors. Instead of complex income extraction calculations, lenders focus on what really matters – your market rate and earning capacity.
Your professional approach to contracting gets the professional mortgage assessment it deserves.
We focus on your day rate and contract, not your company structure complexity.
We explain your setup to lenders in terms they understand and appreciate.
Your application bypasses traditional self-employed complexity and uses pure day rate assessment.
Direct access to underwriting teams who understand and welcome limited company contractors.
Often faster than traditional applications as no complex company analysis required.
Ans: Often yes. Lenders view limited companies as professional structures and many offer preferential rates to company contractors.
Ans: No. Contract-based underwriting ignores your salary and focuses purely on your contract day rate.
Ans: Irrelevant to contract-based underwriting. Lenders focus on your earning capacity, not extraction methods.
Ans: No. Specialist lenders using contract-based underwriting don’t require accounts – just your current contract.
Ans: Not a problem. Contract-based underwriting works from your first company contract if you have relevant previous experience.
Ans: Contract-based underwriting doesn’t use dividends at all – it’s purely based on your gross contract day rate.
