Analysis of cases processed through the Mortgage Broker Tools (MBT) platform showed that over the course of 2021, the average maximum loan size available to mortgage borrowers has been £275,633. However, where borrowers have earned an element of variable income, this average maximum has fallen to £231,999.
The disparity is even greater when it comes to the average minimum loan available to borrowers with variable income.
During the same period, the average minimum loan available to borrowers was £162,371, but for those with variable income this dropped by a quarter to £129,909.
Tanya Toumadj (pictured), chief executive at MBT, said: “In recent weeks we have seen more lenders returning to consider variable income as part of their affordability calculations.
“However, many still do not and even where lenders do consider it, the criteria around variable income and amount that can be included vary greatly.”
“It means that borrowers with variable income will struggle to borrow as much whose earnings are more predictable, but there are still good options if you know where to look. This is where thorough affordability and criteria research can help to identify better outcomes for customers,” she added.
