Mortgage Guides

Four to four and a half times income is the standard multiple, rising to five or five and a half times for higher earners and certain professions, and six times at a handful of lenders on tightly defined criteria. Affordability is then stress tested against a higher notional rate, so the multiple is a ceiling rather than a promise.

Yes. Most lenders want two years of accounts or SA302s and will average the last two years, though several will work from one year and a few will use the latest year alone where it is the higher. Limited company directors can often have retained profit counted as well as salary and dividends, which changes the borrowing figure materially.

Two to six weeks from application to offer on a straightforward residential case. Complex income, non-standard construction or a leasehold flat with a slow managing agent all add time. A full application pack submitted complete is the single biggest lever on speed.

There is no single score. Each lender scores against its own model, so a decline at one says little about the next. What matters is the detail: how recent any missed payment was, whether there is a default or CCJ, the amount and whether it is satisfied. Recent and unsatisfied is what closes doors.

Two years keeps you flexible and lets you reprice sooner if rates fall, at the cost of a second set of fees and a second application. Five years buys certainty and, unusually, is currently cheaper than two at several major lenders. If you might move or repay early, check the early repayment charge before the rate.

Interest coverage ratio: the test buy-to-let lenders apply to rental income against a notional interest rate. Typically the rent must cover 125% of the payment for a basic rate taxpayer or 145% for a higher rate taxpayer, stressed at 5.5% or at the pay rate plus a margin on a five-year fix.

Yes, through specialist lenders, and the price depends almost entirely on how recent it is. Over three years old and satisfied is close to mainstream pricing. Within twelve months and unsatisfied narrows the panel sharply and typically costs 1% to 2% above a clean case.