Contractor Mortgage Guide

Reviewed 2026-08-19

Halifax contractor mortgage criteria

Contractor day-rate income

Yes

Umbrella company income

Yes

Limited-company director income

Yes

CriteriaVerdictDetail
Contractor day-rate incomeYes

×5×46; favourable employed treatment if ≥£500/day, £75k, or IT contractor

Day-rate incomeYes
Contract-based income (first-timer)Yes
Umbrella company incomeYes
Limited-company director incomeYes

Own contract; self-employed route if pays own tax/multiple contracts/employs others

CIS incomeYes

Treated as employed

Fixed-term contract incomeYes
Max LTV (standard)Yes
  • up to 95% LTV

Source: lender intermediary criteria, every row verified on or since 2026-07-13 (most recent check 2026-08-19). 1 row carries no verification date and is shown as published by the lender without a dated check. Criteria change frequently — always confirm current policy with the lender or a broker.

Adviser's view

Halifax contractor mortgage criteria at a glance

  • Income basis: day rate × 5 days × 46 weeks
  • Track record: 12 months' contracting history
  • Maximum LTV: 95%
  • Favourable employed-style treatment: £500+/day, £75k+, or IT contractors
  • Umbrella: accepted · CIS: treated as employed · Fixed-term: accepted
  • Limited company directors: accepted on own contract (self-employed route if you pay your own tax, hold multiple contracts, or employ others)

Halifax is a strong high-street option for day-rate contractors, using a straightforward five-times-forty-six-week calculation on gross day rate, with lending up to 95% loan-to-value. Contractors on £500 a day or more, earning £75k or above, or working in IT get the most favourable employed-style treatment, which can smooth the underwriting compared with lenders that treat every contractor the same. Twelve months' trading history is the benchmark to work to.

Umbrella income is accepted on the same basis, and CIS workers are treated as employed rather than pushed into a self-employed assessment — a genuine advantage over lenders that route CIS through two years' accounts. Limited company directors running their own contract are accepted too, though Halifax moves you onto its self-employed route if you pay your own tax, hold multiple contracts, or employ others, so the day-rate calculation isn't guaranteed for every Ltd structure. Fixed-term contract income is also accepted without complication.

The table above carries the current verified positions; day rate, contract structure, and time trading all affect where you land, so confirm the specifics with Halifax before applying.

FAQ

Does Halifax do contractor mortgages?

Yes. Halifax annualises gross day rate at 5 days × 46 weeks, lends up to 95% LTV, and looks for 12 months' contracting history. Contractors on £500+ a day, earning £75k+, or working in IT get its most favourable employed-style treatment.

How does Halifax calculate contractor income?

Day rate × 5 × 46. A £400 day rate is assessed as £92,000 a year. Umbrella income uses the same basis and CIS workers are treated as employed, but limited company directors who pay their own tax or run multiple contracts move to the self-employed route instead.

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