Large Town Allowance

A Large Town Allowance is a portion of a salary paid to employees that takes into account the expenses of working in an area of the country where there is a relatively high cost of living.

The Large Town Allowance may be of use to mortgage lenders when they calculate the total amount that a prospective home buyer can borrow for their mortgage. Some of the key factors that help lenders determine how much buyers can borrow are their credit ratings and their total household income.