As a contractor working outside IR35, you enjoy more control over how you’re paid, but that flexibility can cause issues when applying for a mortgage. High street lenders often treat you like a self-employed applicant, demanding 2–3 years of accounts or ignoring your contract income entirely.
At Mortgage Knight, we specialise in outside IR35 contractor mortgages, helping you get approved based on your current contract or day rate, not just company accounts or low drawings.
We arrange mortgages for:
Most high street banks:
We work with lenders who understand how you’re paid and assess affordability using your contract income or day rate, which often means you can borrow significantly more.
Many contractor-friendly lenders will use:
Day Rate x 5 Days x 46–48 Weeks = Annual Income for Mortgage Affordability
Example:
Day rate: £500
Weekly: £2,500
Assumed income: £115,000 per year
That’s your true earning potential—and the figure we use to unlock your mortgage.
Status: Joe was an IT contractor working outside IR35, paid £450/day. He had only been contracting for 8 months.
Challenge: His bank wouldn’t lend due to lack of 2 years’ accounts.
Solution: We used his contract and CV to support a mortgage based on day rate income.
Outcome: Joe secured a £350,000 mortgage with just a 10% deposit.
Status: Nadia paid herself £12k salary + £18k dividends for tax efficiency, despite earning over £100k.
Challenge: Her accountant-led income didn’t reflect her real affordability.
Solution: We placed her with a lender using gross contract value, not low declared income.
Outcome: Nadia bought a 4-bed house with a £475,000 mortgage, no need to change her pay structure.
Status: Sanjay wanted to purchase his first rental property via a limited company (SPV) while working outside IR35.
Challenge: Standard BTL lenders didn’t understand his contractor income.
Solution:We used a contractor-friendly BTL lender accepting day rate income and SPV structure.
Outcome: Sanjay bought a 2-bed flat with a 75% LTV limited company mortgage.
If you’re working outside IR35, your contract income gives you strong borrowing power—but only if your lender knows how to assess it.
At Mortgage Knight, we make sure your mortgage reflects what you really earn, not just what you draw on paper.
Speak to a contractor mortgage specialist today and let’s get you approved.
A: Yes. Some lenders accept contractors with as little as 3–6 months history, especially if you were previously in a similar role.
A: Not necessarily. We help contractors paid via Ltd Co, umbrella, or even offshore—depending on the lender’s criteria.
A: Absolutely. We work with lenders who ignore low drawings and assess you based on your gross contract income.
A: Not always. Many lenders will accept just your current contract, a CV, and bank statements—no full accounts needed.
A: Not necessarily. With the right lender, you can access mainstream or even high-street equivalent rates.
