multiples for joint mortgage

The_White_Horse

Hi, I've only ever gotten a mortgage based on my income.

How do lenders calculate two earners (married couple say). Is it say 4x both or 3x biggest and 1.5x lower etc.

Any advice greatly received.

Cheers.

kingstreet

They use affordability calculators which takes both income and outgoings into account.

The_White_Horse

ok thanks. So if one is on 50k and the other on 30k, they will say you have 80k. But, you currently spend 25k between you a year on credit cards, child care, clothes, holidays, cars, loan repayments etc etc so we will lend you 55k x 4 = 220k.

kingstreet

No.

They do not use income multiples.

Try picking a lender and visiting its affordability calculator. Enter your income and the requested outgoings and see what is offered.

The term of the mortgage, as well as costs like childcare, maintenance and other commitments can make a big difference to the calculator outputs.