Can I afford a house in London on a £100,000 salary?
On £100,000, the average London property is 5.25 times your income — close enough to standard lending limits that a 15% deposit puts the London average comfortably within reach without any specialist lending. This is the income level where London starts to feel accessible rather than aspirational, and where your choice of location genuinely widens.
Based on typical UK tax bands and lending criteria. This is an estimate, not financial advice.
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You are in a strong affordability position compared to the UK average
Your income and disposable income are both above typical levels for UK buyers, giving you solid flexibility on housing, rent, and car choices.
Safe monthly disposable income
After expenses and debt, you have around £6,600 left each month — with a 10% buffer built in for unexpected costs. This is comfortable for most people at this income level.
Home you could realistically afford
Around £488k is a realistic target based on your salary, savings, and outgoings. Outside London, this budget typically goes further.
Most UK buyers with a similar income typically purchase between £429k and £546k
Recommended rent budget
Up to £2,917/month keeps your finances healthy based on the 30–35% income rule. Anything above this may start to feel like a stretch.
Car finance calculator
Most cars in the UK are purchased using finance (PCP or HP), where buyers pay a deposit and a fixed monthly cost. This estimate gives a realistic guide based on typical finance rates (~8% APR).
How much you can comfortably pay each month
£200–£350/month is a sensible range for most UK buyers. This is what many people on a typical salary comfortably spend on a car.
Most UK car buyers use PCP or HP finance — affordability is based on monthly payments, not total price.
Outside London, this budget typically goes further. In London and higher-cost areas, affordability is usually 15–25% lower than these figures suggest.
Why this calculator is different
Most calculators show the maximum you can borrow. This tool focuses on what you can comfortably afford — based on real UK salaries, actual expenses, and everyday spending patterns.
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Based on typical UK tax bands and lending criteria. This is an estimate, not financial advice.
What lenders will see
Standard maximum mortgage: Most UK lenders offer between 4× and 4.5× your salary — £400k to £450k on your income.
The gap: The average London home costs £525k. This is 5.3× your salary, which exceeds standard criteria. A larger deposit bridges part of the gap.
Deposit guidance: A deposit of 15–20% will strengthen your application and unlock better mortgage rates.
Local context: London
Note: on £100,000, your personal allowance begins to taper, which reduces your take-home pay more sharply than the salary increase suggests. Despite this, a 4.5× mortgage on £100,000 supports up to £450,000 in borrowing. With a 15% deposit of £90,000, your total budget reaches £540,000 — covering the full London average. This unlocks family-sized properties in areas like Lewisham, Haringey, and Enfield, as well as quality two and three-bedroom flats in Zone 2 boroughs including Brixton, Dalston, and Camberwell. Adding a specialist lender at 5.5× and a slightly larger deposit moves the budget to £600,000+, bringing parts of Clapham and Stoke Newington into view.
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Compare other UK cities
See how affordability differs across the UK based on salary and average house prices.
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