Getting a Mortgage as a CIS Contractor or Daily Rate Contractor — What Are Your Options?

If you’re a CIS contractor or daily rate contractor, you might already know that getting a mortgage isn’t always as simple as it is for someone on PAYE. But the good news? There are options and more lenders than ever before are starting to understand how contractors work.

At The Residential Mortgage Hub, we’ve helped plenty of contractors buy their first homes, move up the ladder, or remortgage for a better deal. Let’s break down what’s available.

CIS Contractors — You’re in a Good Spot

If you’re paid under the Construction Industry Scheme (CIS), many lenders will treat you more like an employee than a self-employed applicant (if you’ve been contracting for at least 12 months).

Most contractor-friendly lenders will:

• Use your gross income from your CIS payslips (before tax is deducted).
• Typically look at your last 3 to 6 months’ payslips to work out your income.
• Require 12 months’ history in the construction industry or similar trade.

Key advantage: You usually don’t need full company accounts or 2 years of tax returns, which makes the process much faster and simpler.

Daily Rate Contractors — More Lender Options Than You Think

If you work on a daily rate (common in IT, finance, engineering, and consulting), some lenders will take your contract income into account directly.

They’ll usually calculate your annual income like this:

Your daily rate × 5 days × 46 to 48 weeks

Even if you don’t work every week of the year, lenders often assume you’ll work around 46 to 48 weeks, allowing for holidays or downtime between contracts.

What you’ll need:

• A current contract showing your daily rate.
• A history of contracts (usually 12 months’ history).
• Proof of ongoing work or future contracts can also strengthen your application.

What If You’re Newly Self-Employed or Have Gaps in Work?

If you’re relatively new to contracting or had gaps between contracts, don’t worry, there are still potential options:

• Some specialist lenders will accept 6 months of contracting history.
• If you have a strong track record in your industry before contracting, lenders may be flexible.
• We can also look at joint applications with a partner or family member to strengthen affordability.

What About Credit Score and Deposits?

• Credit: Most contractor-friendly lenders are flexible, but a higher credit score will definitely help.
• Deposit: Typically, you’ll need at least 5% to 10% deposit. If you can stretch to 15% or more, even better rates might be available.

How We Can Help

At The Residential Mortgage Hub, we understand that contractors don’t fit into neat boxes. We’ll:

✔ Find lenders who understand CIS and contracting income.
✔ Advise you on what documents you’ll need.
✔ Help package your application to give you the best chance of approval.
✔ Search across both high street banks and specialist lenders.

Whether you’re paid under CIS or by the day, getting a mortgage doesn’t have to be difficult — you just need the right advice and lender.

Ready to get started?
Get in touch today for a free initial chat and find out what you could borrow.