£150,000 Mortgage

If you’re buying a property and need a £150,000 mortgage to complete the purchase, this guide breaks everything down for you, highlighting the key facts and figures you’ll want to know so you can plan ahead with more confidence. 

How Much Is a £150k Mortgage per Month?

Mortgage repayments have several moving parts that can influence the exact monthly cost. But, using our mortgage repayment calculator below, based on a realistic interest rate of 4% (as of September 2025), a typical loan term of 25 years, and a standard capital repayment method, a £150,000 mortgage would cost £792 per month. 

The main drivers of what your mortgage will cost each month (regardless of the amount you borrow) are:

• Interest rates. Lower rates mean cheaper monthly payments.

• Mortgage term. Spreading repayments over more years reduces the monthly cost, but increases the total interest paid.

You can use our mortgage calculator right now to adjust the term length and interest rate to see how different scenarios affect the monthly repayments. 

The table below provides a range of examples for what a £150k mortgage payment might look like each month across different terms and interest rates. These examples also assume a capital repayment mortgage is used, where both the loan and interest are paid off during the loan term.

*This line represents the most realistic repayments, based on current interest rates (as of September 2025). The figures in the table above are for illustrative purposes only. 

As the table shows, a longer mortgage term reduces your monthly bill but also means you’ll pay more interest over the lifetime of the loan. The key is finding the right balance for your budget and long-term plans, so you neither overstretch your finances nor overpay. 

How Much Do You Need to Earn for a £150,000 Mortgage?

One of the first things a lender will consider is your annual income to determine how much they're willing to lend you. The most common starting point for this is a multiple of your salary, typically between four and five times your annual income. Based on this, to get a £150,000 mortgage, you'd generally need to be earning somewhere between £30,000 and £37,500 per year.

Keep in mind that if you're buying with a partner or a friend, lenders will assess your combined earnings for a joint mortgage, which can significantly increase your borrowing power.

To see how this might work out for you, based on your annual income, take a look at our quick and easy-to-use affordability calculator. 

While 4.5 times your income is a common yardstick for many lenders, some are willing to offer a higher multiple, such as 5.5 times or even 6 times your annual salary in certain cases. This means even if you don’t meet the £30,000-£37,500 income range, there could still be a way for you to secure a £150,000 mortgage.

Here’s an example of the wider salary ranges that could potentially secure a £150,000 mortgage.

Remember, this is just a guideline at this stage. Lenders will assess your overall financial situation, including your debts, expenses, and credit history, before reaching a final decision on how much you can borrow for your mortgage.

How Much Deposit Will You Need for a £150,000 Mortgage?

Your deposit is tied to the property’s purchase price rather than the loan amount itself. Lenders normally ask for a minimum of 5% of the property value, with the rest made up by your mortgage.

If the property you’re looking to buy is valued at £200,000 and you want a £150,000 mortgage, the deposit you’ll need will be £50,000 (25%). The ratio of the loan amount to the property's value is known as the loan-to-value (LTV) ratio. So, in this case, your LTV would be 75%.

Here are some deposit examples based on different property values where you’d borrow £150,000:

A lower LTV generally unlocks better mortgage rates and will attract a wider choice of lenders. This is because a smaller mortgage, in comparison to the property's value, is perceived as a lower risk.

What Else Affects Your Monthly Repayments and Loan Eligibility?

Beyond the interest rate, term, and your financial situation, other factors can affect your mortgage repayments and how lenders view your application.

• Your mortgage repayment method: You can choose a capital repayment mortgage, where your monthly payments clear the debt over time, or an interest-only mortgage, where you only pay the interest and repay the capital at the end of the term. For a £150,000 mortgage on a residential property, a capital repayment mortgage is the most common choice.

• Fixed rate vs. variable rate: The type of mortgage rate deal you choose will also affect your repayments. A fixed-rate mortgage locks in your interest rate for a set period, so your payments stay the same no matter what. A variable-rate mortgage, on the other hand, can change over time.

• Your credit history: Lenders review your credit report for any past issues like late payments, defaults, or CCJs. The cleaner your history, the more attractive you are. If you’ve had any adverse credit issues - don’t panic! There are specialist lenders who can still help (and we know who they are and where to find them!).

• Your employment history: Lenders prefer to see stable income and a consistent work history. If you're self-employed or have a more complex earnings history, it can make you a less attractive applicant in the eyes of certain lenders. Again, if this is you, don’t panic! There are still plenty of lenders who will consider you for a mortgage (and we know who they are and where to find them!).

What Other Costs Should You Budget For?

When you buy a home, there are other costs to consider besides your £150k mortgage payment. It’s essential to budget for these up front so you don’t encounter any unpleasant surprises down the line.

• Stamp Duty: A tax you pay on property purchases over a certain value (currently £125,000). If you’re a first-time buyer, you qualify for additional Stamp Duty relief on homes up to a value of £500,000. 

• Legal Fees: Paid to your solicitor or conveyancer to handle all the legal paperwork and local authority searches (Can range anywhere between £500 to £1,500 depending on the type of property).

• Survey Fees: To check the property’s condition and highlight any structural issues that need to be fixed (Can range anywhere between £300 to £1,500, depending on the type of survey and property value).

• Mortgage Fees: Some mortgages have an arrangement or product fee, which can often be paid upfront or added to your loan (ranging from £0 to £2,000).

How Much Will a £150k Buy-to-Let Mortgage Cost?

Buy-to-let mortgages are usually arranged on an interest-only basis, meaning you only pay the interest part each month. That keeps costs low, but means you’ll still owe the original £150,000 at the end of the term.

Using our buy-to-let mortgage calculator, and as above, based on a realistic current interest rate of 4.5% (as of September 2025) with a loan term of 25 years, a £150,000 interest-only mortgage would cost £563 per month.

For buy-to-let arrangements, most lenders want rental income to cover 125–145% of the monthly mortgage payment. So, for a mortgage repayment of £563, the property will need to generate a monthly rental income of between £704 and £816.

Can You Get a £150k Mortgage with Bad Credit?

Yes, it’s possible. Having a low credit score or a history of bad credit doesn’t automatically mean you can’t get a mortgage. While some high-street lenders might say no, several specialist mortgage lenders (all of which have strong working relationships with our sister brand, Haysto) are usually much more willing to help. 

These lenders look at the whole picture, not just your credit score. They will consider the type of credit issue, when it happened, and the amount involved. It might mean you have to pay a slightly higher interest rate or put down a larger deposit, but it’s definitely not impossible.

Why Pick Picnic for Your £150,000 Mortgage?

Trying to find a mortgage deal on your own can be a challenging and time-consuming process. Having an experienced mortgage broker on your side - like us! - makes things much easier and more efficient. 

Here’s how we can help:

• Finding you the best mortgage deals: Our mortgage team will already know which lenders are currently offering the most competitive rates, having access to the wider mortgage market rather than just a handful of high-street lenders. They can compare mortgage deals from over 100 lenders to find the one that’s right for your circumstances, including exclusive offers not generally available elsewhere. 

• Your mortgage, made simple from start to finish. Our online portal allows you to track your mortgage application step-by-step, sign and upload documents in seconds, and contact your mortgage team at any time. No back-and-forth emails. No printing. No guesswork. Everything you need, all in one place, so you can stay organised and in control of your mortgage journey. 

• Making mortgages possible, whatever the circumstances: Our team of advisors have a clear understanding of the eligibility criteria used by each lender and will identify the one that's best placed to help. Our sister brand, Haysto, has become the No.1 destination for customers who've been turned away elsewhere. For anyone with a complex income or adverse credit record - we’ve got your back!