How Many Times My Salary Can I Borrow?

The standard range

Most residential lending sits between 4 and 4.75 times income, with 4.5 times the common working assumption. Above that, lenders need a reason.

Regulatory limits also sit in the background: lenders can only write a limited proportion of their overall lending above 4.5 times income, which is why higher multiples come with tighter criteria rather than being freely available.

What gets you to 5 times or more

The usual routes to a higher multiple:

• Higher income, often a single income above 50,000 to 75,000 or a joint income above 75,000 to 100,000
• Professional status schemes for doctors, dentists, vets, solicitors, accountants, actuaries, architects, barristers and some other qualified professionals, which can reach 5.5 times and occasionally more early in a career
• A larger deposit, typically 15 to 25 per cent or more
• A clean credit file and low unsecured debt
• Newly qualified professionals whose income is expected to rise steeply

What pulls the multiple down

A 5 per cent deposit, significant credit commitments, dependants, adverse credit, a term running past retirement age or heavily variable income all tend to push a lender towards the lower end of its range, or from a higher multiple lender to a lower one.

Multiples versus affordability

A multiple is only the cap. A lender offering 5.5 times will still run its affordability model and may land below that, while a lender capped at 4.5 times may well give you the full figure. Comparing multiples alone can lead you to the wrong lender.