Can I afford a house in London on a £120,000 salary?
A £120,000 salary gives you strong buying power in London. At this income level, the average London property represents around 4.4 times your salary — within the standard 4.5× lending threshold. With a solid deposit, the majority of London's housing stock is realistically within reach.
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 £8,100 left each month — with a 10% safety buffer built in.
Home you could realistically afford
You could realistically afford a home worth around £578k based on your salary, savings, and financial position.
Most UK buyers with a similar income typically purchase between £508k and £647k
Recommended rent budget
A monthly rent of up to £3,500 would keep your finances healthy, based on the 30–35% income rule.
Car budget
You could comfortably afford a car between £12.0k and £18.0k. Staying closer to the lower figure keeps more budget for savings.
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 — £480k to £540k on your income.
The gap: The average London home costs £525k. At 4.4× your salary, this sits within standard lending guidelines for most lenders.
Deposit guidance: A 10% deposit should be enough for most standard lenders at this price-to-income ratio.
Local context: London
London house prices average around £525,000 — significantly above the UK average of £285,000. But on a £120,000 salary, the picture changes considerably. Standard lending at 4.5× gives you a mortgage of up to £540,000, meaning the average London home is within borrowing limits alone, before any deposit is added. This opens up areas well beyond outer boroughs, including popular inner-London neighbourhoods like Clapham, Stoke Newington, Greenwich, and parts of Hammersmith.
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Compare other UK cities
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