A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Letter I

Income Multiples

Lenders lend money, based on your income this is a rate generally 3 times your annual salary in the case of a single application, 3 times first applicant plus 1 times second in joint applications. You will also find the multiple of 2.5 times joint income use for joint applications.

Lenders will allow you to use the multiple that gets you the highest loan but reserve the right to check affordability.

Some lenders, due to the fact that rates are currently their lowest for 20 years, will allow income multiples in excess of the ones stated above. Above all you should remember that income multiple not only protect the lender against bad lending they also protect you the borrower against being repossessed because you cant afford the mortgage.