Income Calculation
Income calculation is a method used by lenders to assess affordability. Mortgage lenders use ‘income multiples’ for income calculation - the amount you can
borrow is calculated by multiplying your annual gross income- usually by around 3 or 4 times. Secured loan lenders use different methods for income calculation, usually a
percentage of your monthly gross income which allows for living expenses etc. Income calculations are usually more generous for people with a good credit history, for joint
borrowers, for those with high incomes and for those with a lot of equity in their property.
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