In simple terms, most lenders will offer between 4.5x and 5.5x your income, meaning borrowing potential could range from £540,000 to £660,000, depending on your circumstances.
However, if you’re a professional earning £120k+, the real answer is more nuanced, especially if your income includes bonuses, RSUs, partnership drawings or complex structures.
See what lenders would offer on your income structure.
How Mortgage Lenders Calculate Borrowing on £120k
Mortgage affordability isn’t based on salary alone. Lenders consider:
- Basic income
- Bonus and commission
- Equity income such as RSUs
- Self-employed or partnership profits
- Existing commitments
- Deposit size
- Location (especially London affordability stress tests)
For a straightforward £120,000 employed basic salary with minimal debts, borrowing could look like:
Income Multiple Approximate Loan
- 4.5x £540,000
- 5x £600,000
- 5.5x £660,000
Some lenders may go higher, particularly for professionals in stable industries.
Bonus and Commission Income
Many professionals earning £120k+ receive a significant portion of income through:
- Annual bonuses
- Performance commission
- Profit share
- Not all lenders treat bonus income equally.
Some may:
- Use 50% of bonus
- Use a 2–3 year average
- Cap variable income
- Exclude it entirely
Specialist lenders may use 100% of consistent bonus income, significantly increasing borrowing potential.
If your compensation package is structured with a lower base salary and higher performance element, choosing the right lender is critical.
RSUs and Equity Income
Restricted Stock Units (RSUs), share options and vested equity are increasingly common among:
- Tech professionals
- Finance professionals
- Senior executives
- Many high street banks ignore RSU income or apply heavy discounts.
However, some lenders will:
- Use vested RSUs as income
- Apply 50–75% of average realised equity
- Consider future vesting schedules
If a large part of your £120k+ income comes from equity, this can dramatically impact how much mortgage you can borrow.
Self-Employed or Partnership Income
If you earn £120k as:
- A company director
- LLP partner
- Consultant
- Contractor
Your borrowing capacity depends on how income is structured.
Lenders may assess:
- Salary + dividends
- Net profit + salary
- Share of partnership profit
- Retained profits
Some lenders will use the latest year’s figures if income is rising. Others require two or three-year averages.
Being declined often comes down to choosing the wrong lender for your structure, not affordability itself.
Affordability in London on £120k
If you’re buying in London, affordability calculations become more sensitive due to higher property prices, larger loan sizes, stress rate testing, higher stamp duty thresholds.
A £120k income may secure £600k+ borrowing, but in many London boroughs, property values exceed £800k–£1m.
This often requires, larger deposits, dual incomes, specialist high-income lenders, enhanced affordability models.
Understanding which lenders stretch to 5.5x or more can be key.
Large Deposits Tied Up in Investments
Many high earners do not hold cash deposits, instead, funds may be in:
- ISAs
- Investment portfolios
- SIPPs
- Company shares
- Crypto or alternative investments
Some lenders allow:
- Assets under management to strengthen affordability
- Use of 5% of investment balances as income
- Flexibility where significant assets exist
Structuring this correctly can improve your approval chances.
Why High Earners Still Get Declined
Earning £120k+ does not automatically guarantee mortgage approval. Common reasons for declines include:
- Complex pay structures
- Heavy reliance on bonus or equity
- Recently self-employed
- Large financial commitments
- Applying to the wrong lender
High street banks operate rigid models. Specialist lenders apply manual underwriting and can interpret income more intelligently.
So, How Much Can You Borrow on £120k?
The realistic answer:
- £540,000 to £660,000 in many cases
- Potentially higher with specialist lenders
- Dependent on bonus, RSUs, partnership income and deposit
- The right lender choice can mean a difference of £100,000+ in borrowing power.
Speak to a Specialist Mortgage Broker for High Earners
If you earn £120k+ and your income includes bonus, equity, partnership drawings or complex elements, your case needs to be structured properly. At Oportfolio Mortgages, we regularly help senior professionals, city and Canary Wharf employees, tech and finance professionals, directors and partners, high-income self-employed applicants.
We assess your full income structure, not just your payslip.
See what lenders would offer on your income structure.
Book a confidential consultation with our team today and secure the right mortgage for your next move.
