The amount that you want to borrow is expressed as a ‘multiplier' of your income. So, if your income is £18,000 per year, and you want to borrow £54,000, the income multiplier is said to be 3 times.
Again, the loan is considered up to a maximum multiplier. A typical income multiplier for a single person might be 3 times income. For a couple it might be expressed as the higher of:
Length of expected occupancy
When considering how much you can afford, apart from taking into account the loan criteria, you should also consider how long you expect to be in the house. This will affect the term of the mortgage - i.e. the number of years over which it is to be repaid.
The Financial Services Authority produces tables comparing different products from various providers, on their website.
For more information about mortgages and regulations, visit the mortgages section on the Money Made Clear website, created by the FSA (Financial Services Authority).
Use the MoneyBasics mortgage calculator to calculate your repayments.