Contracting vs a permanent salary: what could you actually borrow?
Nobody ties perm-vs-contract to mortgage capacity directly — so we built the comparison. Enter your day rate and an equivalent permanent salary and see, lender by lender, whether contracting would actually get you a bigger mortgage, a smaller one, or about the same. Based on verified contractor lending criteria (verified 2026-08-19).
This is an information tool, not advice: it doesn't give a recommendation, a decision in principle, or a guarantee any lender will lend to you, and it isn't a recommendation to change your employment status.
Worked example: £450/day Ltd-company contract vs a £65,000 permanent salary
Sole-director PSC, 5 days a week, compared against an equivalent £65,000 PAYE salary on the same flat 4.5x basis.
On a £450/day contract, 6 of 6 lenders would lend you more than they would on a £65,000 salary.
Halifax: £465,000 on the contract vs £292,000 on the permanent salary — a £173,000uplift from contracting, on this lender's day-rate route alone.
Change the inputs below to model your own numbers.
It isn't always a win: a lower day rate against a strong permanent salary
£250/day, 4 days a week, umbrella-engaged, compared against a £70,000 permanent salary — the reverse of the case above.
On a £250/day contract, 5 of 5 lenders would lend you less than they would on a £70,000 salary.
Halifax: £207,000 on the contract vs £315,000 on the permanent salary — a £108,000 lower figure than the permanent role would support at this lender. A lower day rate or fewer days a week can easily flip the comparison the other way.
Change the inputs below to model your own numbers.
Between £0 and £10,000.
Gross annual salary, £0 to £1,000,000.