Mortgage on a £120,000 Salary: How Much Can I Borrow?
On a £120,000 salary you could usually borrow about £480,000 to £540,000, which is 4 to 4.5 times your income.
| Multiple of income | You could borrow | With a 10% deposit, price up to | Monthly payment (4.5%, 25 years) | Share of take-home pay |
|---|---|---|---|---|
| 4 times salary | £480,000 | £533,333 | £2,668 | 42% |
| 4.5 times salary | £540,000 | £600,000 | £3,001 | 47% |
| 5 times salary | £600,000 | £666,667 | £3,335 | 53% |
Monthly payments on £540,000 at different rates
| Interest rate | 25 years | 30 years | 35 years |
|---|---|---|---|
| 3.5% | £2,703 | £2,425 | £2,232 |
| 4.5% | £3,001 | £2,736 | £2,556 |
| 5.5% | £3,316 | £3,066 | £2,900 |
| 6.5% | £3,646 | £3,413 | £3,262 |
A longer term lowers the monthly payment but costs more interest in total. Your take-home pay on £120,000 is about £6,346 a month (England, Wales and Northern Ireland, before pension), so lenders will look at what is left after the payment and your other costs.
What lenders look at
- Income: salary, and sometimes bonuses and overtime if they are regular.
- Outgoings: credit cards, loans, car finance, childcare and student loan repayments.
- Deposit: a bigger deposit usually gets a cheaper rate.
- Credit history: a good record gives a wider choice of lenders.
Two of you applying together? Lenders add both incomes. At 4.5 times combined income, two salaries of £120,000 could support around £1,080,000.
Nearby salaries
| Salary | Borrow at 4 times | Borrow at 4.5 times |
|---|---|---|
| £90,000 | £360,000 | £405,000 |
| £100,000 | £400,000 | £450,000 |
| £150,000 | £600,000 | £675,000 |
Figures are for illustration. Buying costs such as stamp duty are not included. Speak to a regulated mortgage adviser before you borrow. See the mortgage calculator and £120,000 after tax.
Frequently asked questions
How much mortgage can I get on a £120,000 salary?
Most lenders offer between 4 and 4.5 times your income, so on £120,000 that is roughly £480,000 to £540,000. Some lenders go higher in certain cases, but your outgoings, debts and credit history decide what you can actually borrow.
What house price can I afford on £120,000?
With a 10% deposit, borrowing £540,000 (4.5 times salary) points to a property price of around £600,000. A bigger deposit raises the price you can afford.
What would the monthly payment be?
For £540,000 over 25 years at 4.5% the repayment is about £3,001 a month, which is 47% of your take-home pay of £6,346.
Can I borrow more with a partner?
Yes. Lenders usually add both incomes together. Two people each earning £120,000 could borrow around £1,080,000 at 4.5 times combined income.
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.