How to Prove Income as a Contractor for a Mortgage

How to Prove Income as a Contractor for a Mortgage

Blog Article

Proving income as a contractor can seem daunting, especially when your pay structure doesn’t fit the standard employee model. But with the right documents and approach, you can confidently show lenders that you have a stable and reliable income.

Here’s how contractors can prove income when applying for a mortgage.

1. Use Your Current Contract
Many lenders will assess your income based on your current contract rate, rather than annual accounts. This is especially helpful for limited company contractors.

They’ll typically:

Multiply your daily or hourly rate by 5 days a week

Then multiply that by 46–48 working weeks (depending on the lender)

This gives an estimated annual income figure used for affordability.

Example:
£400/day × 5 days × 46 weeks = £92,000 annual income

2. Provide Multiple Contracts if Available
If you’ve worked on several contracts over the last 12–24 months, showing them can help prove consistency and reliability. Even better if there are no gaps between contracts.

3. Offer Bank Statements
Lenders will want to see your personal and/or business bank statements, typically for the past 3–6 months. This proves regular income and shows how money flows from your clients into your account.

Make sure your statements are:

Clear and consistent

Free from bounced payments or overdraft reliance

Showing deposits that match your contract rate

4. Limited Company Contractors: Accounts & Tax Returns
If you’ve been contracting through a limited company, you may need to provide:

Company accounts

SA302s and tax year overviews from HMRC

Some lenders may assess your income based on salary + dividends, while others use your gross contract rate—which can allow for a larger mortgage.

Final Thoughts
Proving income as a contractor is all about presentation. With the right paperwork and a broker who understands contractor finances, you can demonstrate your earning power with confidence.

At Contractor Mortgage Solutions, we’ll guide you through every step to ensure your income is presented in the best possible light.