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Mortgage glossary

Income multiples

Most commonly associated with mortgages, an income multiple is the standard measure whereby lenders use a person's earning to calculate how much money they are prepared to lend to them.

Lenders will permit customers to take out loans up to the value of their gross annual income multiplied by the income multiple of the lender, i.e. with gross annual earnings of £25,000 and a x3 income multiple a customer could take out a mortgage of up to £75,000.


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