UK Mortgage definition

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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 even down to a daily basis to suit their requirements, without the public being aware of what's required in order to obtain a loan.