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Here you will learn all you need to know about getting a £150,000 mortgage, including what the repayments will be, how much you need to earn, and more.
Calculate your £150k mortgage repayments
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.
Here is a quick summary of everything you need to know about £150k mortgages:
- The monthly repayments on a mortgage of this amount are around £792
- You will need a household income of between £33,333 and £37,500 to qualify for a £150k mortgage at most lenders
The best way to apply for a £150k mortgage is through a broker who can look at your individual circumstances
Similar amounts
If you need to borrow slightly more or less than £150k, you may find the following pages useful:
You can also adjust the settings on the calculator to check repayments on any size of mortgage. However, to get a more accurate representation of your actual repayments, it's best to speak to a broker, who can consider your specific circumstances better than a calculator can.
Speak to a mortgage expert
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 |
Our expert says:
“At standard 4.5x salary multiples, securing a £150k loan generally requires a sole or joint household income of around £33,300. However, most lenders look beyond basic earnings, as outgoings, existing credit commitments, and dependent costs all feed into stress testing. If your income is slightly lower, a whole-of-market broker can connect you with lenders offering higher income multiples.”
Lee Trett £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 much income do you need to get a £150k mortgage?
Use our affordability calculator to work out whether your income stretches far enough.
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.
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 an expert broker? Speak to us about your £150,000 mortgage options
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.
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