Borrowers who have an element of variable income are being offered an average maximum loan size 19% lower than the overall market average, new analysis has revealed.
The latest Mortgage Broker Tools (MBT) Affordability Index suggested that over the course of 2021 so far, 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 by 19% to £231,999.
MBT’s findings also showed 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 was £162,371, while the average minimum loan available to borrowers with variable income was 25% lower, at £129,909.
MBT CEO, Tanya Toumadj, said that the last few weeks 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,” Toumadj commented. “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 and, with Mortgage Broker Tools, brokers have access to the most comprehensive research platform available in the market for their clients – whether they earn variable income or not.”
Latest News
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories