HSBC for Intermediaries has increased the income multiple it uses to work out how much applicants can borrow for a mortgage.
For those earning less than £30,000 the maximum income multiple is 4.49 times single or joint salaries, rising to 4.75 times salary if you earn more than £30,000- and five-times salary for those earning £100,000 or more.
Aaron Strutt, product director at Trinity Financial, says: "Each of the lenders works out how much someone can borrow using affordability calculators, but they use different figures to generate the maximum loan."
Why would people want to take such high-income multiple?
Many borrowers would not stand a chance of buying a property they want to live in or in an area they like without the higher income multiples.
It was not long ago income stretch multiples of up to six times salary were available through the smaller building societies, although the bigger lenders have entered this market.
What is the maximum income multiple?
Trinity Financial’s brokers have access to a host of lenders offering up to 5.5 times salary mortgages for those earning over £75,000.
We have also secured access to a lender offering up to 5.75 times salary mortgages for applications borrowing between £500,000 and £1.5 million.
How do you get a more generous income multiple?
Trinity Financial's brokers can quickly work out which lender will offer you the most money once they know how much you earn and the size of your deposit.
The lenders will want to know about your current expenses like credit cards and loans also your credit history.
What sort of mortgages do we arrange?
Click here to view some of the mortgages we have arranged over the last ten years.