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1.2 Borrowing Capacity

1.2.1 Income

  • The basic requirement is that income is sufficient to service the loan and associated costs.

  • The borrowing level is generally worked out as a multiple of income, with a wide range of definitions in what makes up qualifying income, to the actual multiplier.

  • Proof of income may be required, and this may range from actual salary slips to employer's letters.

  • Where the applicant is self employed, proof will generally be accounts for two or three years, or perhaps an accountant's letter or even correspondence with the Inland Revenue


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