There was some good news for higher earners this weekend, as the Times revealed that a major high-street lender has increased its income multiples to 5.5 times for those earning a minimum of £75,000. Experts claimed that the relaxation in criteria was indicative of the high level of competition within the mortgage market at the moment, and suggested that this could lead to other lenders becoming flexible with their own multiples. Mortgage brokers however said that, since the Mortgage Market Review two years ago, an individual assessment of affordability played a more important part. Those with high outgoings, including childcare, might not therefore achieve the highest income multiples.
The financial press also highlighted the importance of protecting the family’s finances. The Sunday Express reported that as many as 7 out of 10 families do not have cover in the event of illness, despite saying they would not be able to cope financially if one income earner fell ill. Relying on state benefits is likely to mean a significant, and often unmanageable, drop in income for most families, so it is worth considering the types of cover available that could ease that pressure.
What the papers said about Income Multiples and Family Protection