← Money Scenarios🏠 Mortgage & Home

How much house can I afford on £120,000 a year?

Someone earning £120,000 a year, with a modest amount of other monthly debt and a real down payment saved up, wants to know what a lender would actually approve.

Estimated max home price

£447,436

Max loan amount
£382,436
Estimated monthly payment
£2,800
Down payment used
£65,000 (14.53%)
Housing-cost-to-income ratio
28%

Assumptions used

  • £120,000 annual income
  • £550/month in other debt
  • 5.2% interest rate, 30-year term

This uses standard lending ratios (roughly 28% of gross income for housing costs, 36% for total debt) as a guide — actual lender limits vary by credit profile, loan type, and location. Treat this as a starting point for the conversation with a lender, not a pre-approval.

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Mortgage Affordability Calculator

Terms used here

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