Borrowing
What house can I afford on a £20,000 salary?
On £20,000 a year, many lenders would lend around £90,000, which is 4.5 times your income. With a 5% deposit that reaches a home of about £94,000, or about £100,000 with 10% down.
| Deposit | Home | Monthly | Cash on day one |
|---|---|---|---|
| 5%£4,700 | £94,000 | £452 | £7,480 |
| 10%£10,000 | £100,000 | £456 | £12,800 |
| 15%£15,750 | £105,000 | £452 | £18,570 |
| 20%£22,400 | £112,000 | £454 | £25,250 |
Repayment mortgage at 4.5% over 30 years. Day one cash is the deposit plus fees, and Stamp Duty in England for a first-time buyer. Try your own rate and term
Against your take-home pay
£20,000 is about £1,493 a month after tax and National Insurance in England. The £456 mortgage with a 10% deposit would be about 31% of that, before bills and council tax.
Common questions
- How much can I borrow on £20,000?
- Many lenders lend around 4.5 times income, so about £90,000. Some go up to 5 times, about £100,000, for some buyers. Debts and other payments bring it down. Only a lender can say for sure.
- What would the mortgage cost a month?
- With a 10% deposit on about £100,000, a £90,000 repayment mortgage at 4.5% over 30 years is about £456 a month, before bills and council tax.
- How much cash do I need on day one?
- About £12,800 at that price with a 10% deposit: the £10,000 deposit plus legal fees, searches, a survey and moving. First-time buyers in England pay no Stamp Duty up to £300,000.
- What if I'm buying with someone?
- Lenders add your incomes together. Two people on £20,000 each is £40,000 between you, which reaches about £200,000 with a 10% deposit.
A guide, not a promise anyone will lend. Debts, other payments and your credit history change what a lender offers. Checked 2026-10-04.