I Earn £55k - What Home Can I Realistically Afford?

If you earn around £55,000 a year, you’re in a strong position financially - but with rising house prices and tougher mortgage rules, it’s completely normal to wonder:

“What home can I actually afford?”

The good news?

You can afford more than you might think. And depending on the route you take - mortgage or rent-to-own - your options might be much broader than you expect.

This guide breaks down what a £55k salary means in real terms, how lenders assess your affordability, and how alternative models like rent-to-buy with Keyzy can open the door to homes you might have assumed were out of reach.

1. How Lenders Calculate What You Can Borrow

Most mortgage lenders in the UK use a simple formula:

You can typically borrow 4.0x – 4.5x your annual income.

Which means on a £55,000 salary, that gives you:

£220,000 – £247,500 mortgage potential

If you’re buying with a partner, combining incomes increases this further - but let’s focus on a £55k solo income for this example.

2. How Much Deposit You’d Need

For a standard first-time buyer mortgage, you usually need between 5% and 15% of the home value as a deposit.

Here’s a rough breakdown on a traditional mortgage:

And this is where many buyers get stuck.

Even with a solid salary, saving a deposit while paying rent is extremely difficult - especially deposits of £20k and more.

That’s why so many people earning £50k - £60k look for alternative routes like private rent-to-buy.

Here’s a rough breakdown on rent-to-own:

4. How Rent-to-Buy works

As a renter, you can move into the home you want to buy immediately and rent it for two years. During this time, up to 100% of your rent is converted into a deposit, which you can use to purchase the home at the end of your rental period. Unlike traditional buying, you don’t need a deposit, and you have the option to purchase the home at a pre-agreed price when your lease ends (optional, no obligation). Find out more about how private rent-to-buy works.

5. Real Example: What You Could Afford With Rent-to-Own on £55k

Let’s break it down with a simple, realistic scenario:

Salary: £55,000

Location: West London

Home type: Modern new build 1-bed flat

Deposit required: £0

Rental: £1,700 pcm

Potential budget with Keyzy: £388,200

Money back after 2-years: £40,800

You’re officially a homeowner in just 2-years!

6. The Bottom Line: You Have Solid Options

If you earn £55,000, you are in a strong position to buy - whether through a standard mortgage or through rent-to-buy.

Rent-to-own unlocks homeownership for people who are:

• Struggling to save a deposit
• Facing strict mortgage eligibility
• Wanting predictable rent (no surprises for two years!)
• Needing more flexible criteria than traditional lenders
• Recently moved to the UK and lack long credit history
• Unsure about committing to a home without trying it first
• Wanting a fixed, future purchase price to plan with confidence

It’s a practical path for renters who feel “stuck,” but still want to own.

The dream of owning a home is absolutely within reach.

It’s just about choosing the route that works for your situation today. Visit keyzy.com to find out more about private rent-to-own.