Your income multiple is used as a guide to how much a lender will be prepared to advance you on a mortgage. As a very rough rule of thumb the maximum amount you are normally able to borrow to purchase a property will be three times your annual salary. However multiples of up to 4 times income are not uncommon. Alternatively it tends to be 2.5 times your joint income if you are buying with a partner.

As an individual this would mean on a salary of £25000 you could expect to raise a mortgage of £75000. As a couple with one earning £25000 and the other £20000 you would be able to borrow up to £112500.

The above is not set in stone. There will be occasions when youll be lent more.

The income multiple rule of thumb may be useful for the lender as a guide but it will tell you little about how much you can actually afford to repay. This is because mortgage rates are a key factor in determining the affordability of houses. The lower the rate the less a given mortgage is going to cost you but if interest rates rise the actual cost to you each month will also rise.

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