We recommend new multiples

To cope with volatile mortgage rates of up to 15% multiples of 3x single and 2.5x joint income were introduced. Many lenders have responded to today's lower rates by increasing their income multiples, but in most cases by not enough to properly reflect today's interest rate environment. Budgeting for the base rate to double to 7.5% over the next few years would be conservative in as sessing appropriate income multiples for today's market.

For borrowers taking a five-year fixed rate a few lenders are now prepared to lend up to 5x single or 4x joint, subject to a minimum income. On Monday Charcol is launching a 3.99% five-year fixed rate on this basis up to 90% LTV. Halifax also offers 3.99% fixed for five years on a similar basis up to 80%.