$100k Salary: How Much Home Can You Really Afford?

If you’re pulling in around £100,000 a year, you probably wonder how big a house that actually buys. The answer isn’t a magic number – it depends on your debt, savings, and the mortgage rates you can lock in. Below we break down the math, show realistic price ranges, and give you a few quick moves to stretch your buying power.

Start With the Basic Mortgage Formula

Most lenders look at two key ratios: the loan‑to‑value (LTV) and the debt‑to‑income (DTI). With a £100k salary, the safe DTI ceiling is around 36 % of gross income. That works out to about £3,000 a month for all debt – mortgage, car payments, credit cards, everything.

If you have no other big debts, you can comfortably afford a mortgage payment of roughly £2,200‑£2,500 per month. At current 6‑7 % rates, that translates to a loan of about £350,000‑£400,000. Add a 10‑20 % deposit and you’re looking at properties in the £430,000‑£500,000 ballpark.

Boost Your Buying Power Without Breaking the Bank

Two simple tricks can push the ceiling higher. First, save for a larger deposit – moving from a 10 % to a 20 % down‑payment cuts the loan size in half and can land you a better interest rate. Second, clear any high‑interest debt before you apply. Reducing a car loan or credit‑card balance improves your DTI and signals lower risk to lenders.

Don’t forget government schemes like Help to Buy or shared ownership if you qualify. Those programs can effectively lower the amount you need to borrow, letting you step onto a £450,000‑£550,000 property with the same salary.

Location matters too. In London the same £100k income might only stretch to a one‑bedroom flat, while in the North‑East you could snag a detached house. Use online calculators to plug in local price ranges and see where your budget lands.

Bottom line: with a £100k salary, expect to aim for a total home price between £430k and £550k, depending on deposit size, other debts, and regional market. Keep your DTI below 36 %, save a solid deposit, and explore any first‑time buyer incentives. That will give you the best shot at a mortgage that feels comfortable, not crushing.