Contractor mortgages in Scotland

Contractors can often borrow based on their day rate rather than their tax returns. Specialist lenders usually work out an annual income from your day rate (typically day rate × 5 days × 46 to 48 weeks), which for many contractors means borrowing more than a standard assessment would allow. We know which lenders do this and what they need to see.

Who we help

IT, engineering, oil and gas, and other day-rate contractors
Contractors working through a limited company or an umbrella company
Fixed-term and zero-hours contract workers
Locums, interims and freelancers on regular contracts
Contractors who've recently moved from permanent employment

How is a contractor mortgage worked out?

Lenders take your gross day rate and annualise it. For example, a day rate of £450 × 5 days × 46 weeks gives an assumed income of £103,500, and the lender applies its usual affordability checks to that figure. This is an illustration only, not a quote; each lender has its own rules.

What do lenders usually look for?

A current contract, ideally with time left to run
A track record of contracting, often 6 to 12 months (some lenders accept less if you were in the same field before)
Your contracting history and any gaps between contracts
Bank statements showing the contract income being paid

Limited company vs umbrella company

If you contract through your own limited company, some lenders will use your day rate, while others will look at salary and dividends from your accounts. If you work through an umbrella company, lenders may use your day rate or your payslips. We'll find the approach that gives you the clearest, strongest application.

Why use a broker?

Many high-street lenders treat contractors like self-employed applicants and ask for two years' accounts, which often undersells your income. We go to the lenders who assess you on your contract, check your case against their criteria before applying, and keep things moving through to offer.

Read our guide: Understanding contractor mortgages

Contractor mortgage FAQs

Can I get a mortgage between contracts?

It's harder, but not impossible. Most lenders want a current contract in place. If a renewal is due, we'll help you time the application.

Do I need two years' accounts?

Not with lenders who use your day rate. They mainly need your contract and evidence of your contracting history.

I'm on a fixed-term contract. Is that the same thing?

Lenders treat fixed-term employees a little differently from day-rate contractors, but many will use your contract salary. We'll match you with the right lenders.

Can I remortgage as a contractor?

Yes. The same day-rate approach can apply when you remortgage or move home.

Talk to us

Call 01355 511068 or email Hello@YNSmortgage.com for a free, no-obligation chat. We're open evenings and Saturdays.