The size of mortgage that lenders will offer will often be worked out by multiplying your income each year by certain factors. The multiplier tends to alter from time to time, and therefore a customer wishing to ascertain how much they can borrow today, should seek advice from a professional and impartial mortgage adviser.
Sector and company-specific key figures that are closely related to the company value. A sales multiple of 4, for example, means that the company value is four times as high as its annual sales volume.
The size of mortgage that lenders will offer will often be worked out by multiplying your income each year by a set figure. If you are the only person taking out the mortgage, the usual maximum income multiple is three times your yearly income. So someone earning Â£15,000 could borrow three times this amount, or Â£45,000. If you are taking out a mortgage with someone else, the multipliers might be three times the main income plus one times the second income. Or it could be two-and-a-half times the two incomes added together. (Lenders may consider including all or part of any regular bonuses or commission you receive as your income).
A typical valuation technique in corporate finance. See Price Earnings. What multiple is a company's market value of its earnings, employees, sales or other measure = trading multiple. What multiple of earnings, employees, sale or other measure was paid in a recent similar deal = transaction multiple.