Mortgage Income Multipliers
Mortgage Income Multipliers Explained
Income multiples are used by lenders as one calculation in determining how much they are prepared to lend on mortgage or remortgage. The most common multiples used is 3 times a single income or 2.5 times joint incomes, whichever gives the higher figure. More generous income multipliers are available from some mortgage lenders and these lenders will be more flexible if the loan to value is relatively low . In the example of Abbey your credit rating is used and may get you an income multiplier of 5 times your salary. The examples of income multipliers given below are a guide only.
Try Go Direct's mortgage budget planer to calculate how much you can afford for your new mortgage then once you have got an idea how much you can borrow using the income multiplier guide below use our mortgage calculators to see if the mortgage payments match you monthly mortgage budget.
Based on Income up to £19999
| 3.8 + single income or 3.8 joint income | High Credit Score |
| 3.6 + single income or 3.1 joint income | Medium Credit Score |
| 3.5 + single income or 2.8 joint income | Low Credit Score |
Based on Income £20000-£24999
| 4.0 + single income or 4.0 joint income | High Credit Score |
| 3.8 + single income or 3.3 joint income | Medium Credit Score |
| 3.6 + single income or 2.8 joint income | Low Credit Score |
Based on Income £25000-£34999
| 4.3 + single income or 4.3 joint income | High Credit Score |
| 4.0 + single income or 3.5 joint income | Medium Credit Score |
| 3.7 + single income or 3.0 joint income | Low Credit Score |
Based on Income £35000-£59999
| 4.6 + single income or 4.6 joint income | High Credit Score |
| 4.3 + single income or 3.8 joint income | Medium Credit Score |
| 3.8 + single income or 3.6 joint income | Low Credit Score |
Based on Income £60000 and above
| 5.0 + single income or 5 joint income | High Credit Score |
| 4.7 + single income or 4.2 joint income | Medium Credit Score |
| 4.0 + single income or 3.6 joint income | Low Credit Score |
It now is becoming increasingly difficult to know what a mortgage lender will lend without having your mortgage agreed in principle. For more information on income multipliers and how much you can borrow on a mortgage or remortgage please contact us for mortgage advice today. You can also find out more about your credit rating and credit score at personal credit report .
You may also be interested in:
- Mortgage Protection Insurance
- Best Mortgage Type
- Fee Free Mortgage Advice
- Types of Mortgage
- Best Mortgage Deals
- House Price Comparison
We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500
REPAYMENTS ON YOUR MORTGAGE
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd. Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority Registered in England & Wales Company 5703224.
We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500
