Gross annual income includes basic annual salary and can also include 100% guaranteed overtime, shift allowance or bonuses. In addition, up to 50% regular overtime, shift allowance or bonuses may also be taken into account.
| Allowable income of the highest earner | income multiplier |
| Gross income up to £19,999 | 2.5 times |
| Gross income over £20,000 and up to £34,999 | 4.0 times |
| Gross income over £35,000 and up to £49,999 | 4.3 times |
| Gross income over £50,000 | 4.5 times |
In the case of joint applications, the multiple chosen is based on the highest earner's income, which is then applied to the sum total of the joint incomes, less any financial commitments.
Financial commitments must be deducted from the gross annual income before the multiplier is applied. Where any financial commitments have less than six months remaining they may be ignored.
For cases where the relevant income multiplier does not cover your clients loan amount, please contact our Business Development Manager on 0121 521 4028.
Example one
Applicant one earns £35,000
Applicant two earns £6,500
Financial commitments total £4,500
Based on the higher income of £35,000 the applicable multiplier is 4.3 times joint incomes
Joint income is £41,500
Less financial commitments of £4,500
Maximum loan entitlement is £159,100 (4.3 x £37,000)
Example two
Applicant one earns £15,000
Applicant two earns £15,000
Financial commitments total £1,500
Based on the higher income of £15,000 the applicable multiplier is 2.5 times joint incomes
Joint income is £30,000
Less financial commitments of £1,500
Maximum loan entitlement is £71,250(2.5 x £28,500)