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Ipswich BS ups income multiples in mortgage affordability shake-up

  • 13/01/2021
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Ipswich BS ups income multiples in mortgage affordability shake-up
Ipswich Building Society has increased its highest income multiple to 5.5 times earnings as part of a host of changes to the mutual’s affordability criteria.


To qualify for the enhanced multiple, one borrower must earn more than £75,000 a year. The borrower’s job does not need to be a professional role such as a doctor, lawyer, accountant or architect.

Underwriters will assess the mortgage application manually to decide if the borrower’s earning potential is sustainable.

Alongside the changes to income multiples, the society has increased the regular shift pay allowance it will accept from 50 per cent to 100 per cent in some cases and 100 per cent of buy-to-let profits will be accepted.

Income from retired company directors, who continue to receive earnings from the business can be used to support the mortgage application.

Non-dependent occupiers of the household can be excluded from the affordability assessment.

Richard Norrington (pictured), chief executive of Ipswich Building Society, said: “We’re really pleased to get 2021 off to a positive start by enhancing our income multiples for high earners.

“We feel this is an important step given the recent upwards movements in house prices and predictions of further growth this year.

“While it’s likely that many higher multiple applicants will be professionals, it’s important to us to be inclusive and that’s why we’ve taken the step to allow anyone with a higher income to apply, so that we don’t exclude individuals who have made a financial success of their career in other fields or industries.”


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