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£150,000 Mortgages and the Monthly Repayments

Calculate your monthly repayments on a £150,000 mortgage and find out how to secure the best deal

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 28, 2022


It’s time to find a better deal
With interest rates at historic lows, now is the time to speak to an expert mortgage broker to find out how much you could save

This article outlines what the mortgage repayments could be for a £150,000 mortgage, how much deposit you’ll need, and getting the best rates available.

Have a look at our repayment calculator here for an indication of what a mortgage for this amount will cost:

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Mortgage Repayment Calculator

Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.

Enter the amount you're borrowing
2.5% is an average figure but the rate you get may vary
25 years is average, but most lenders offer longer and shorter terms

Monthly Repayments:

Interest Only:

Total amount paid at end of term:

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

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Here at Online Mortgage Advisor, we get countless enquiries about mortgages of this amount, and since the advisors we work with are whole-of-market, they’re best positioned to help you find the best available mortgage rate.

How much is a £150,000 mortgage a month?

Customers often ask us ‘what are the average repayments on a £150K mortgage?’, and the answer depends on a number of factors and your credit history will have a bearing on the interest you’ll pay, which of course will directly affect your monthly mortgage repayments.

A £150K mortgage’s monthly repayments will vary depending on the interest rate you’re given as well as the length of the term.

The table below (approximate figures) illustrates how £150k mortgage payments can differ based in these variables.

Interest Rate 1% 2% 3% 4% 5%
5 years £2,564 £2,629 £2,695 £2,762 £2,831
10 years £1,314 £1,380 £1,448 £1,519 £1,591
15 years £898 £965 £1,036 £1,100 £1,186
20 years £690 £759 £832 £909 £990
25 years £565 £636 £711 £792 £877
30 years £482 £554 £632 £716 £805
35 years £423 £497 £577 £664 £757

Which mortgage rate you qualify for will depend mostly on your level of deposit and your profile as a borrower.

If you’re still unsure about the cost of a £150k mortgage, get in touch and the expert advisors we work with will get you mortgage quotations based on your specific circumstances and connect you with the lender most likely to offer favourable rates.

Does the term of the mortgage affect repayments and the total amount you’ll repay?

The short answer is, yes. We’re often asked, how long does it take to pay off a £150,000 mortgage? This all depends on your circumstances and how much you can afford to pay each month.

Based on an average interest rate of 3%, the following is an indication of how reducing the term of your mortgage will affect your repayments and the total amount you’ll repay.

Monthly Repayment Total Repaid Interest Paid
150k mortgage over 30 years £632 £227,621 £77,621
150k mortgage over 25 years £711 £213,358 £63,358
150k mortgage over 20 years £832 £199,627 £49,627
150k mortgage over 15 years £1,036 £186,437 £36,437
150k mortgage over 10 years £1,448 £173,796 £23,796
150k mortgage over 5 years £2,695 £161,712 £11,712

The above example is for demonstrative purposes only and you should consult your broker or lender for the most up-to-date information and rates.  

As you can see, the term of the mortgage has a huge bearing on your monthly repayments and how much you’ll finally pay.

For instance, taking a mortgage over a 20-year term, as opposed to a 25-year term could save you over £13,700.

Talk to one of the expert mortgage advisors we work with for the right advice on which term may be the most beneficial for you. They will be able to get specific mortgage quotations based on your financial circumstances.

How much income do you need?

Another common question we hear is ‘how much household income do I need for a £150k mortgage? and this very much depends on a number of eligibility factors, such as how you earn your income, your credit history and how much deposit you have.

The answer is either simple or more complex depending on your individual circumstances.

Read our article for more info: how much do you need to earn to get a mortgage for £150,000.

How much deposit is needed?

Mortgage lending is based on how much you want to borrow in relation to the value of the property. This is known as the loan-to-value (LTV) ratio.

If you put down a £15,000 deposit on a property worth £150,000, then you own 10% outright and need to borrow 90%. This means your LTV ratio is 90%.

The current minimum deposit is 5% or 95% LTV (loan-to-value) for residential mortgages. So for a mortgage on a £150,000 home, you’ll need to raise at least £7.5K for a deposit.

Can you get a £150,000K mortgage with no deposit?

There are 100% mortgages available, but these are often limited to family mortgages where a family member, usually parents, deposit the equivalent of the deposit into an account with the mortgage lender as security. After an agreed period of time (often three years) and certain criteria have been met, they can get their money back.

If you’re having trouble raising a deposit, there are also government Help to Buy schemes and shared ownership to consider.

Does bad credit affect how much deposit you need on a £150k mortgage?

The short answer is yes. If you’ve had bad credit, mortgage providers will see you as a greater risk and the worse your history, the greater risk you’ll be seen as; so a larger deposit will be needed.

Credit issues may include…

  • No credit history
  • Low credit score
  • Late payments
  • Missed mortgage payments
  • Defaults
  • CCJs
  • IVAs
  • Debt management plan
  • Repossessions
  • Bankruptcy
  • Payday loans
  • Multiple credit problems

All mortgage lenders are different, so may require different deposits (or loan-to-value) depending on your circumstances and how they access the risk.

For instance, if you’ve relatively light bad credit (low credit score, late payments etc), some lenders may be happy with a smaller deposit and higher LTV.

But if your credit history includes more serious matters, such as a repossession or bankruptcy, then they may insist on a larger deposit to provide a lower LTV, which means lower risk to the lender. Moreover, you may also be considered higher risk if you’ve ever used payday loans. It is usually more difficult to get a mortgage with payday loan use on your file.

So depending on your perceived risk to the lender, you may be required to provide a proportionately higher deposit.

LTV Band Property Value Deposit Required Mortgage Amount
Lower Risk 95% £157,894 £7,894 £150,000
90% £166,666 £16,666 £150,000
85% £176,470 £26,470 £150,000
80% £187,500 £37,500 £150,000
Medium Risk 75% £200,000 £50,000 £150,000
70% £214,285 £64,285 £150,000
65% £230,231 £80,231 £150,000
60% £250,000 £100,0000 £150,000
55% £272,727 £122,727 £150,000
Higher Risk 50% £300,000 £150,000 £150,000

The above is for demonstrative purposes only and you should consult your mortgage broker or lender for the most up-to-date information and rates.

We touch on bad credit history further into this article, but if you’re unsure if your credit history will be an issue, talk to one of the advisors we work with today, they’re experts when it comes to finding mortgages for customers with bad credit.

Can you get a £150,000 buy-to-let mortgage?

Yes, of course, but the rules can be different for buy-to-let mortgages, so it’s important to know a few things before you start.

Some mortgage providers will expect you to put down a higher deposit of around 25%, although others will accept 15% subject to other criteria. You may also find that certain providers insist on minimum income requirements – around £25k is standard – although affordability come down to whether the forecast rental income will cover the mortgage repayments by 125-130%.

There are also lenders who will only offer you a buy to let deal if you have owned and lived in your own home from at least six months, but specialist providers may consider first-time buyers subject to other criteria being met.

The majority of buy to let mortgages are set up on an interest-only basis, so see the section below for examples of what the monthly payments on a £150,000 mortgage might be.

Can you get a £150,000 mortgage as interest-only?

Yes, many providers offer these products to residential borrowers who can evidence a valid and viable repayment strategy.

Generally, to qualify for an interest-only mortgage you also need a slightly larger deposit, as most lenders will only consider up to 75% loan-to-value (LTV), with a few going up to 80%, and a handful up to 85% in the right circumstances.

Interest-only mortgages can have benefits over repayment agreements – the lower monthly cost being the main one.

With an interest-only agreement, the borrower only pays off the interest each month and the full loan amount is due at the end of the term. With a repayment, you chip away at the loan itself and pay the mortgage as you go.

The table below shows how mortgage repayments on a £150,000 loan compare interest-only vs. repayment based on 4% interest.

Monthly Repayment Interest-Only
5 years £2,762 £500
10 years £1,519 £500
15 years £1,110 £500
20 years £909 £500
25 years £792 £500
30 years £716 £500
35 years £664 £500

Make an enquiry and the experts we work with provide this information over the phone and connect you with the right mortgage lender who can help you find the best mortgage deals for you.

Other factors that may affect a £150,000 mortgage application

Whether your £150,000 mortgage application is successful may also depend on a number of other factors in addition to your credit rating (see above), including…

The property type

Some mortgage lenders refuse to lend on properties with non-standard construction (e.g. thatched roof, timber frame) while others consider them higher risk and offer less favourable rates. Find out more about non-standard construction mortgages here.

Your age

Some providers impose age limits on their mortgages and won’t lend to anyone over 75. At others, it’s 85, and a minority won’t set an upper age limit if they’re confident you can make the repayments post-retirement.

Your income type

Those with a big, juicy PAYE salary from a full-time job are most desirable to lenders. Anything else usually falls into the non-standard category, which potentially means less favourable rates.

However, there are specialist lenders who cater to self-employed mortgages, as well as offer mortgages with bonus income and commission factored in. There also mortgage lenders who accept benefits as supplemental income. Find out more about income types and mortgages here.

Whether you already own property

Some lenders will consider you a slightly higher risk if you already own a home and are buying a second home to live in part time somewhere else. You may need more deposit as well as meet additional higher minimum income requirements, and there could well be greater scrutiny around mortgage affordability.

Your credit rating

It is still possible to get a mortgage if you have bad credit, depending on the severity of the issue (a missed phone bill payment is less severe than a recent bankruptcy, for instance) and how long it has been on your file (the longer, the better).

Bad credit customers may require a specialist lender who is more sympathetic to their circumstances, which is why whole-of-market advice is so important.

£150,000 mortgages for self-employed borrowers

It is possible to secure a mortgage if you’re self-employed, but you may need a specialist lender to get the best rates as some will consider your income non-standard, and therefore offer you a less favourable deal due to the perceived risk.

The income lenders usually accept is…

  • Employed: Gross basic income – bonus – overtime – commission – car / town / shift allowances – mortgage subsidy – other cash employer benefits.
  • Sole Trader: Net profit (if using accounts) – Total income received (if using SA302s).
  • Partnership: Your share of net profit (if using accounts) – Your share of total income received (if using SA302s).
  • Ltd Company: Your share of director’s salary – Your share of dividends – Occasionally lenders can consider net profit if there has been a large business expense or a sum earned but left in the business and not withdrawn.

Most lenders require self-employed borrowers to evidence three years’ worth of accounts for a mortgage, but some will accept two, and a minority even less than that. Find out more about mortgages for the self-employed.

£150,0000 secured loans

Secured loans (also known as second charge mortgages or homeowner loans) are a viable option for property owners who need to raise capital, but cannot or do not wish to remortgage, for whatever reason.

It is certainly possible to get a homeowner loan of £150,000 secured against your property as a second charge subject to meeting the lender’s eligibility requirements, and factors such as non-standard income and adverse credit are usually less restrictive, while LTV requirements are flexible.

Rates for secured loans can be as competitive as mainstream mortgages, they’re also usually quicker to arrange and most have no early settlement fees.

Where can I find a £150,000 mortgage calculator?

There are a variety of online calculators, which can give you some very rough mortgage calculations. However, there are many variables when it comes to getting a mortgage.

Using online calculators to calculate what mortgage you can borrow, or how much it may cost in mortgage repayments, can reveal a very rough guide of what is you might be able to expect. Your best option is to get expert advice from one of the brokers we work with.

Speak to an expert mortgage broker

If you’re still wondering ‘can I afford a £150k mortgage? or would like to know more, call 0808 189 2301 or make an enquiry for a free, no-obligation chat.

We’ll match you with one of the expert brokers we work with. They will be able to answer all your questions and help you find the right mortgage with the best available rates.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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