How Much Can a Couple Borrow on a £120000 Income?

Short answer: most lenders will consider lending around 4 to 4.5 times joint income, meaning a couple earning £120000 could potentially borrow between £480000 and £540000.

That said, income alone does not decide the final figure. Lenders apply detailed affordability checks that can increase or reduce how much a couple can borrow.

This guide explains how lenders assess a £120000 household income, what affects borrowing limits, and what couples can realistically expect.

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How Lenders Assess a £120000 Joint Income

Income multiples are the starting point, not the decision.

Most lenders begin with a multiple of:

• 4 times joint income
• Up to 4.5 times joint income in stronger cases

Borrowing range example

• £120000 × 4 = £480000
• £120000 × 4.5 = £540000

The final offer depends on whether monthly repayments remain affordable under lender stress tests.

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Why Two Couples on £120000 Can Borrow Very Different Amounts

Affordability varies by household, not income band.

Lenders look closely at:

• Monthly outgoings
• Credit commitments
• Dependants
• Lifestyle spending
• Credit history of both applicants

This means two couples with identical income can receive very different mortgage offers.

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What Outgoings Reduce Borrowing Capacity?

Regular commitments reduce affordability more than many expect.

Common examples include:

• Car finance or personal loans
• Credit card balances
• Childcare costs
• Maintenance payments
• Student loan deductions

Even modest monthly commitments can reduce borrowing by tens of thousands once stress testing is applied.

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How Credit History Impacts Borrowing on £120000

Strong credit helps unlock higher income multiples.

If both applicants have:

• No recent missed payments
• No defaults or CCJs
• Well-managed credit usage

Lenders are more comfortable offering borrowing toward the upper end of the range.

If one or both applicants have historic credit issues, borrowing may still be possible but often:

• At lower income multiples
• With higher deposit requirements
• Through specialist lenders

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Deposit Size and Its Impact on Borrowing

Deposit strength influences both lender choice and affordability.

Typical outcomes:

• 5% deposit: stricter affordability, fewer lenders
• 10% deposit: wider lender access
• 15–20% deposit: stronger affordability and lower rates

A larger deposit reduces risk for the lender, which can support higher borrowing.

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Example Borrowing Scenarios on a £120000 Income

Example 1: Low commitments

• Joint income: £120000
• No dependants
• Minimal credit commitments
• 15% deposit

Potential borrowing: up to £540000

Example 2: Moderate household costs

• Joint income: £120000
• Car finance and credit cards
• One dependant
• 10% deposit

Potential borrowing: £500000–£525000

Example 3: Higher fixed outgoings

• Joint income: £120000
• Childcare costs
• Existing loan
• Minor historic credit issues

Potential borrowing: £460000–£490000

These examples are illustrative, not guarantees.

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Can Couples Borrow More Than 4.5 Times Income?

Occasionally, but only in specific circumstances.

Some lenders may exceed standard multiples if:

• Credit quality is exceptionally strong
• Outgoings are very low
• Deposit is substantial
• Income is highly stable

More often, affordability stress testing sets the limit before income multiples do.

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How Employment Type Affects a £120000 Income

Income structure matters as much as income level.

Lenders assess:

• Basic salary
• Bonuses or commission
• Overtime
• Self-employed income
• Contract earnings

Variable income is often averaged or partially accepted, which can reduce borrowing compared to headline income.

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What Monthly Repayments Might Look Like

Repayments depend on rate and term.

Indicative monthly costs on a £500000 mortgage:

• Over 25 years: mid to high £2000s per month
• Over 30 years: lower monthly cost but higher total interest

Lenders assess whether repayments remain affordable if interest rates rise significantly.

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Does Applying Jointly Always Increase Borrowing?

Usually, but not always proportionally.

Joint applications benefit from combined income, but they also combine:

• Both applicants’ debts
• Both credit histories

If one applicant has weaker credit or higher commitments, this can limit the overall borrowing amount.

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Uneven Incomes Within a Couple

Large income differences are common and accepted.

Lenders assess the household as a whole but may be more cautious if:

• One income makes up the majority of affordability
• One applicant has unstable or variable income

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Why Lender Stress Testing Matters

Affordability is tested at higher interest rates than the initial deal.

This protects borrowers if rates rise in future and is often the factor that limits borrowing on higher incomes.

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How Couples Can Improve Borrowing Power

Couples often improve outcomes by:

• Reducing unsecured debt
• Increasing deposit size
• Tidying bank statements
• Waiting until probation periods end
• Choosing lenders aligned with their income type

Understanding lender criteria before applying helps avoid unnecessary declines.

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Key Takeaways

• A £120000 joint income may support borrowing of £480000–£540000
• Income multiples are only a starting point
• Outgoings and dependants matter significantly
• Credit history affects lender choice and borrowing level
• Deposit size can improve affordability outcomes

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Learn More in Related Guides

You can learn more about affordability, joint applications, and income assessment in our other Mortgage Bridge guides.

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This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.