LONDON (CU)_When determining how big a mortgage a lender should let a customer take out, banks and building societies look at various aspects of the individual’s finances. In the United Kingdom, traditionally, homebuyers are allowed to borrow up to a maximum of 4.5 times of their income, although in 2021, some of the big lenders in the European nation, including HSBC and Halifax lifted their caps to 5.5 times. Meanwhile, another UK lender is letting customers borrow up to seven times their salary, allowing some buyers to scale up their property-buying ambitions.
London-based mortgage lender Habito is using a new formula in calculating how much people can borrow, which is considerably…
