Guide to Mortgage Income Multipliers
Income multiples use to be used by lenders as one calculation in determining how much they are prepared to lend on mortgage or remortgage. The most common multiples used was 4.5 times a single income or 4.5 times joint incomes, whichever gives the higher figure. More generous income multipliers were available from some mortgage lenders and these lenders would be more flexible if the loan to value is relatively low . In the example of HSBC if your LTV on your purchase or remortgage is below 85% you may be able to obtain an income multiplier of 5 times your salary. The examples of income multipliers given below are a guide only. (correct as of 06/2023)
Mortgage Borrowing Since 2014
Mortgage lenders still can use income multipliers to cap the amount you can borrow when using the new affordability model.
Your home may be repossessed if you do not keep up repayments on your mortgage
Below is an example of HSBC Income multipliers, correct as of 27.06.2024
For any lending up to £175K (or over 85% LTV) the mortgage amount should be capped at 4.49x the income.
For lending above £175k the mortgage amount should be capped at 5.0 times income.
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.
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 .
