Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Mortgage income multiple
The mortgage amount divided by the borrower's or borrowers' annual income.
What it means
This compares the loan, rather than the full house price, with the annual income of the person or people taking out the mortgage. Income is generally counted before tax. A multiple of four means borrowing four times that annual income. Lenders also look at spending, other debts and expected payments, so the multiple alone cannot tell you whether someone can get or comfortably repay a loan. It differs from the house price to earnings ratio, which compares a home price with pay.
Example
Two people have a combined annual income of £50,000 and borrow £200,000. Their mortgage income multiple is 4 (£200,000 divided by £50,000). If the home costs £250,000, the home price itself is five times their combined income.
Why it matters
It makes it easier to see how much someone is borrowing relative to income without confusing the mortgage with the whole price of a home.
Also known as
loan to income ratio
mortgage loan to income ratio
Related terms
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Deposit to income ratio
A home-buying deposit compared with the buyer's or buyers' yearly income.
Read more -
House price to earnings ratio
A house price divided by a year's earnings, showing how many times annual pay the price represents.
Read more -
Loan to value ratio
A mortgage loan shown as a percentage of the home's value.
Read more -
Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
Read more
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