How much can I borrow on £120,000?
Earning £120,000? Most lenders will offer around £540,000, which costs £3,002 a month at 4.5% over 25 years.
- Borrow at 4.5x income
- £540,000
- Monthly payment (4.5%, 25y)
- £3,002
- Share of take-home pay
- 47%
- Home price with 10% deposit
- £600,000
- HMRC 2026/27 rates
- Private: nothing leaves your device
- Free, no sign-up
On a £120,000 salary you can typically borrow £480,000 to £540,000. A £540,000 mortgage at 4.5% over 25 years costs £3,002 a month, 47% of your take-home pay.
What £120,000 could borrow at each income multiple
The home it could buy
| Deposit | Home price | Deposit needed | Stamp duty (first-time buyer) |
|---|---|---|---|
| 5% | £568,000 | £28,000 | £18,400 |
| 10% | £600,000 | £60,000 | £20,000 |
| 15% | £635,000 | £95,000 | £21,750 |
| 25% | £720,000 | £180,000 | £26,000 |
Buying with someone else
| Household income | Borrow at 4.5x | A month at 4.5% |
|---|---|---|
| £120,000 | £540,000 | £3,002 |
| £140,000 | £630,000 | £3,502 |
| £240,000 | £1,080,000 | £6,003 |
Joint applications add both incomes together. Lenders then take off regular commitments like car finance, credit cards and childcare, so large debts cut what you can borrow.
Keep going
- Monthly payments on a £550,000 mortgage at every rate.
- Your take-home on £120,000 after tax.
- The full picture in how much can I borrow for a mortgage?
Questions people ask
How much can I borrow on £120,000?
Usually £480,000 to £540,000, at 4 to 4.5 times your income. Some lenders offer up to 5.5 times (£660,000) to higher earners or certain professions, and every lender checks your outgoings and credit history first.
What house can I buy on £120,000?
With a 10% deposit and a £540,000 mortgage, about £600,000. With a 15% deposit, about £635,294.
Is a £540,000 mortgage affordable on £120,000?
At 4.5% the payment is £3,002 a month, 47% of your £6,346 monthly take-home pay. Lenders also stress test at higher rates to check you could still pay if rates rise.