See how we can help

Get started online

What are mortgage income multiples?

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 8, 2023

Emma Lunn

Fact Checked By:
Emma Lunn - Finance Editor

Salary and income mortgage multiples

Many mortgage lenders will use a multiple on your annual income to determine how much to lend you.

This article will examine salary multiples as well as the methods mortgage lenders use to assess your application for affordability and eligibility.

Start your mortgage application online below:

Get started online

What is an income multiple?

Lenders have historically used a multiple of your mortgage income to calculate the amount you could borrow. Most will lend 4 or 4.5 times your income. So, if you earn £30,000, at 4.5 times your income you’ll be able to borrow up to £135,000 (30,000 x 4.5).

Lenders will also consider other factors to calculate mortgage affordability.

How will my mortgage deposit impact how much I can borrow?

The bigger the deposit you can put down relative to the property’s value, the bigger the mortgage you’ll be able to get.  A large deposit will also mean cheaper interest rates. 

For a residential mortgage, the maximum loan-to-value (LTV) you can find is 95%. This means that you will need a minimum of a 5% deposit.

You’ll have more choices of mortgages if you have a deposit of 20% or 30%.

Based on my salary, what is the maximum amount I can borrow?

Most lenders will lend up to 4 or 4.5 times your income, but some will lend 6 times your salary.

However, only a few specialist lenders will allow you to borrow that much, and only under certain circumstances.

You’ll normally need to be high net worth to get a mortgage at 6 times your income. 

Send us an enquiry, and we’ll get back to you as soon as possible with a mortgage broker to find a mortgage lender.

Get started online


How can I get a bigger mortgage?

A good way to borrow more money is to buy a property jointly with someone else, so both your incomes are taken into account.

A big deposit relative to the property’s value will also help your application for a bigger mortgage. 

You’ll also need a good credit history.

The mortgage lender will carry out an affordability assessment before deciding how much money to lend you.

Get started online


Can I get a mortgage if I am self-employed?

Yes, self-employed mortgage applicants have access to the same mortgage deals as everyone else.

However, proving your income can be more difficult as you might not have payslips. You will normally need accounts, tax statements from HMRC and bank statements.

The lender might want to see your business accounts if you’re a company director. 

Get started online


Is extra income taken into consideration in salary income multiples?

Yes, some lenders will accept the following:

  • Child Benefit

  • Child Tax Credit

  • Maintenance payments

  • Credit for working tax

  • Disability Living Allowance

  • Investment Income

  • Rental Income

  • Bursary

  • Stipend Income

  • Foreign Income

  • Pension income

Get started online


How will my monthly expenses affect the amount of money I can borrow?

A mortgage lender will also look at your outgoings when determining how much you are eligible to borrow.

These could include:

  • Debts

  • Dependent children

  • Other dependents (e.g. parents who live with you or a partner that you support)

  • Another mortgage

Some companies will ignore loans due to be paid before your mortgage is complete.

Some providers are more flexible and won’t consider child-related expenses in their mortgage application calculations.

If you are married, you may find applying for a loan in your sole name more economical. You should get specialist advice as not all lenders allow this.

Get started online

Should I opt for a longer mortgage term?

You might be able to borrow more if you opt for a longer mortgage term. 

Most people take out 25-year mortgages however choosing 30 or 35 years will mean lower monthly payments, but you’ll pay more interest overall.

The lender may be open to calculating your earnings multiple for your mortgage loan, provided that the term is not too long and does not extend into retirement.

Is it possible to get a secured loan higher than my salary?

If you have enough equity in your property, you might be able to get a secured loan.

These can be for very high amounts. However, your home could be at risk of repossession if you don’t pay the loan on time. 

Get started online