Head Content Writer
Director
A mortgage of £150,000 would be below the national average, but you still want to be prepared if you are planning to apply for one.
Here you will learn how much income you need to get a £150k mortgage, what the repayments will be and how to get started with your application.
Here is a quick summary of everything you need to know about £150k mortgages:
You will need a household income of between £33,333 and £37,500 to qualify for a £150k mortgage at most lenders
The monthly repayments on a mortgage of this amount are around £792
The best way to apply for a £150k mortgage is through a broker
How much income do you need to get a £150k mortgage?
To qualify for a £150,000 mortgage you will need a household income of between £33,333 and £37,500, as most lenders cap their maximum borrowing at 4-4.5 times salary.
A smaller number of lenders stretch to 5-6 times income and others will allow you to submit supplemental income, such as benefits and freelance work, with your application, so it may be possible to get approved for a mortgage of this amount if your salary is lower than this.
Enter your total household income into our affordability calculator below to find out whether you earn enough to get approved for a £150,000 mortgage:
How much will the repayments be?
If you take out a £150,000 mortgage under the current market conditions in the UK, you can expect to pay around £792 per month. This example calculation is for a capital repayment mortgage with a 4% interest rate, taken out over a period of 25 years.
Paying this monthly amount for your mortgage would mean you will have repaid £237,527 by the end of a 25-year term, but most people’s payments change when they remortgage.
The exact repayments for a £150k mortgage will depend on the interest rate you qualify for, the term length you agree and the type of mortgage product you opt for.
You can use our mortgage repayment calculator below to work out how the cost of your mortgage could fluctuate based on these variables:
Factors that will determine your repayments
Here we have broken down the main variables that shape the exact cost of a £150k mortgage, complete with example calculations for context.
Interest rate
The interest rate a lender is prepared to offer you will depend on the strength of your application, specifically the amount of deposit you have and your credit history.
The table below shows how the cost of a £150k mortgage can vary across different interest rates. These calculations are for a capital repayment mortgage taken over 25 years.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£150k | 3.5% | £751 | £225,281 |
£150k | 4% | £729 | £237,527 |
£150k | 4.5% | £834 | £250,125 |
£150k | 5% | £877 | £263,066 |
£150k | 5.5% | £921 | £276,339 |
£150k | 6% | £966 | £289,936 |
Term length
Standard mortgage terms are 25 years but most lenders will give you the option of a longer or shorter mortgage. Taking out a £150k mortgage over a longer period means paying less each month, but more overall due to having more interest instalments to pay.
The table below shows the effect of term lengths on a capital repayment mortgage of £150,000 with an example interest rate of 4%.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£150k | 10 years | £1,519 | £182,241 |
£150k | 15 years | £1,110 | £199,716 |
£150k | 20 years | £909 | £218,153 |
£150k | 25 years | £792 | £237,527 |
£150k | 30 years | £716 | £257,804 |
£150k | 35 years | £664 | £278,948 |
£150k | 40 years | £627 | £300,916 |
£150k interest-only mortgage payments
Your mortgage’s repayment type will also have a major bearing on the monthly payments. The most common type in the UK is capital repayment, but interest-only - where only the interest is payable each month - is an increasingly popular alternative.
The table below highlights how the cost of a £150,000 interest-only mortgage can vary across different rates when taken out over a standard 25-year term.
Mortgage Amount | Monthly Repayments | Overall Repayments |
£140k | £739 | £221,691 |
£150k | £792 | £237,527 |
£160k | £845 | £253,362 |
£170k | £897 | £269,197 |
£180k | £950 | £285,032 |
£190k | £1,003 | £300,867 |
Product type
The cost of a £150k mortgage can also vary depending on which product type you choose. Fixed rate mortgages and variable rate mortgages come with individual interest rates and are priced differently depending on the lender and length of the initial rates period.
Fixed-rate mortgages with a 5-year introductory rates period are traditionally the cheapest option, although the difference between them and their two-year counterparts has narrowed in recent times.
£150k buy-to-let mortgage payments
The repayments on a £150,000 buy-to-let mortgage (BTL) would be calculated in exactly the same way as its residential equivalent, although the costs can be higher as rates for BTL mortgages are higher than they are for residential in general.
The most common way these mortgages are taken out is on an interest-only basis, while capital repayment is the most popular option in the residential space.
With these variables in mind, a typically monthly payment for a £150k buy-to-let mortgage would be £563. A slightly higher example interest rate of 4.5% was used for this calculation.
How to apply for a £150,000 mortgage
The right way to apply for a £150,000 mortgage is to speak to a mortgage broker before you approach any lenders and let them do all of the legwork for you.
By applying for your mortgage through a broker, you will gain access to a wider range of deals, including exclusive rates that aren’t available to borrowers who go direct.
Other benefits of applying for a £150k mortgage through a broker include:
Bespoke advice from start to finish
Access to the entire market
Help with all of your paperwork
No fee for your initial consultation
Ready to take advantage of a free, no-obligation chat with one of Echo Finance’s mortgage brokers to find out how much you could save? Get started here.
FAQs
That depends on the purchase price of the property. You will typically need at least 5% of it to get approved for a mortgage with most lenders, regardless of whether the amount you need to borrow is £150,000 or a higher or lower amount.
Find your local adviser
- Residential mortgages: Everything from fixed-rate to tracker mortgages for first-time buyers, homemovers and remortgage borrowers
- Specialist mortgages: For borrowers who fall outside of standard lending criteria, including people with bad credit, self-employed professionals and more
- Later-life lending: Including advice on equity release, mortgages for pensioners and retirement interest only (RIO) mortgages
- Bridging & Commercial: We have specialist advisors on hand for commercial mortgages, bridging loans, development finance and more
- Insurance & Protection: Including life, home and critical illness cover for families and individuals, as well as landlord and business protection insurance
Echo Finance is regulated by the Financial Conduct Authority and is reviewed annually by an independent compliance company. All of our brokers and advisers hold industry-standard qualifications, such as CeMAP, CeRER and DipMap, where required.
We are committed to providing advice through the channels that best suit your needs. Our brokers can provide advice via phone, email, video and web chat from anywhere in the UK, but we also aim to offer face-to-face appointments for those who request them.