How much can I borrow on a £500 a day rate?
A £500 day rate annualises to about £115,000 and supports roughly £517,500 of borrowing at a 4.5× multiple. Your exact figure depends on deposit, credit and commitments — but the day rate, read correctly, is the starting point. Some lenders stretch beyond the standard 4.5× for qualifying professionals, which can lift the figure further.
The figures at common day rates
Using the standard 46-week method at a 4.5× multiple:
- £300/day → £69,000 → ≈ £310,500
- £400/day → £92,000 → ≈ £414,000
- £500/day → £115,000 → ≈ £517,500
- £650/day → £149,500 → ≈ £672,750
What moves your number
- The income multiple — 4.5× is standard; some lenders reach 5×+.
- Your deposit and the resulting loan-to-value.
- Existing credit commitments and dependants.
- Days worked per week and a clean contracting history.
- £500/day ≈ £517,500 indicative borrowing at 4.5×.
- Higher multiples (5×+) are available to some.
- Deposit, credit and commitments all adjust the figure.
- Use the calculator below for your own rate.
What moves the figure up or down
The multiple is the biggest single lever, and it is not fixed at 4.5. Some lenders stretch further for qualifying professionals or at lower loan-to-values; others pull back where the deposit is small or the credit profile is imperfect. A quarter-point difference in multiple moves the borrowing figure by tens of thousands on a typical rate.
After that comes commitments. Credit cards, car finance, loans and — often overlooked — childcare costs all reduce what a lender will advance, sometimes substantially. Clearing a modest balance before applying occasionally buys more borrowing than the balance itself was worth, which is worth checking before you assume the figure is fixed.
Two applicants, and how they combine
Joint applications are not simply two incomes added. Most lenders apply a single multiple to the combined figure, so a second applicant with modest earnings still lifts the total meaningfully. What matters more is that both incomes are read correctly — a contractor paired with an employed partner is straightforward, but two contractors need a lender comfortable assessing both on contract terms.
Commitments also combine, so a second applicant with substantial credit commitments can add less than expected. Modelling both individually and jointly before choosing a lender is worth the ten minutes it takes.
Affordability, answered
Is the 4.5× multiple guaranteed?+
No — it’s the common standard. Stronger profiles can reach 5× or more with some lenders; high loan-to-value cases may sit at 4×. The calculator uses 4.5× as a sensible middle estimate.
Does my day rate need to be guaranteed for years?+
No. Contract-based lenders assess your current contract; a clean recent history of contracts supports it without a multi-year guarantee.
Can two contractors combine incomes?+
Yes — joint applications are common, though the multiple may be slightly lower on combined incomes. We model single and joint to find the stronger outcome.
Will a bigger deposit increase what I can borrow?+
Indirectly, yes. The income multiple usually improves as loan-to-value falls, so more deposit can unlock both a better rate and a slightly higher multiple. It does not change how your income is read though — if a lender is working from the wrong figure, no amount of deposit corrects that.