Income Multiple

The factor by which lenders will multiply the gross annual salary of mortgage applicants in order to determine the maximum borrowing capability. In recent years, many lenders have replaced the Income multiple by 'affordability' calculations. While this can sometimes be more favourable than income multiples for some people, each lender tends to use their own affordability parameters, so the mechanism for calculating maximum borrowing capability has become less transparent. It also means that the lender can easily change their affordability criteria to suit their day to day requirements, without the public being aware of what criteria must be fulfilled in order to obtain a loan.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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