A fixed-term contract mortgage is a residential mortgage where your income is a time-limited contract (typically 6–24 months) rather than a permanent employment or self-employed trading history. Several UK high-street and specialist lenders now assess these applications on the contract's day rate or annualised salary.
Which UK Lenders Accept 1-Year Contracts?
The following lenders regularly accept 1-year (or shorter) fixed-term contracts as of 2026:
- Halifax — 12-month contracts with 6 months served and any employment gap under 6 weeks in the last 12 months.
- Barclays — day-rate contractors from £312.50/day (£75k annualised) with a 12-month contract.
- Coventry Building Society — annualises day rate × 5 × 46, minimum 2 years' continuous contracting.
- Skipton — 12-month professional contracts (IT, medical, engineering), 6 months served.
- Kensington, Kent Reliance, Bluestone — specialist options for shorter contracts or first-contract applicants.
A broker with access to a comprehensive panel of 90+ lenders matters here — criteria change monthly and mainstream lenders quietly tighten short-contract policy first when rates move.
What Evidence Will You Need?
- Signed copy of the current contract showing day/annual rate and end date
- Last 3 months' payslips or contractor invoices
- Last 3 months' business/personal bank statements
- CV or LinkedIn showing continuous employment in the same industry
- Latest P60 (if PAYE contractor) or SA302 + tax year overview (if self-employed)
How Much Can You Borrow on a 1-Year Contract?
Most lenders cap at 4.5× annualised income. On a £400/day contract that annualises to roughly £92,000, so a borrowing range of £360k–£410k is realistic with a clean profile.
Use our affordability calculator to sanity-check the numbers before you commit.
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Frequently Asked Questions
- Can I get a mortgage on a 12-month contract?
- Yes. Halifax, Barclays, Coventry and Skipton all accept 12-month contracts where you've served at least 6 months and can show industry continuity. Specialist lenders will go shorter.
- Will lenders use my day rate?
- Many will — typically day rate × 5 × 46–48 weeks — provided you've contracted for 12+ months and have a signed current contract.
- Do I need to be limited-company or umbrella?
- Either works. Umbrella contractors are usually assessed on gross contract income; limited-company contractors on salary plus dividends or day rate.
- What if my contract ends in 3 months?
- Lenders want at least 3 months remaining at application, but a written renewal or a strong industry track record can overcome a shorter tail.
Sources & References
- FCA — Mortgage lending statistics Q1 2026 — Financial Conduct Authority
- UK Finance — Mortgage market forecast 2026 — UK Finance
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