£150000 Mortgage: Monthly Repayments & Income Needed
If you’re considering a £150,000 mortgage, you’re likely trying to answer two important questions: what will the monthly repayments look like, and how much do you need to earn to be approved. At this level of borrowing, the mortgage sits firmly in the mid-range — large enough for affordability to matter, but still within reach for many single or joint applicants.
This guide explains monthly repayments on a £150,000 mortgage, the income lenders typically expect, and the factors that most often influence approval.
Monthly Repayments on a £150,000 Mortgage
Monthly repayments depend mainly on your interest rate and the length of your mortgage term. Extending or shortening the term can significantly change affordability.
As a general guide:
- Over 25 years: around £780–£900 per month
- Over 30 years: around £650–£780 per month
- Over 20 years: higher monthly payments, but noticeably less interest overall
Lenders don’t base decisions solely on today’s repayment. They apply affordability stress tests to check whether repayments would remain manageable if interest rates increased.
How Much Income Do You Need for a £150,000 Mortgage?
Most lenders begin with income multiples of around 4 to 4.5 times annual income.
Based on that approach:
- £150,000 ÷ 4.5 = around £33,500
- £150,000 ÷ 4 = around £37,500
In practice, many borrowers need an income closer to £38,000–£42,000, depending on lender criteria, existing commitments, and minimum income thresholds.
Income multiples alone are not enough — full affordability checks always apply.
Why Income Requirements Can Feel Higher Than Expected
Some borrowers are surprised that a £150,000 mortgage still requires a solid income. This usually comes down to:
- Minimum income rules set by lenders
- Stress testing at higher interest rates
- Existing credit commitments
- Household and lifestyle spending
Even where monthly repayments look manageable, lenders must be confident the mortgage remains affordable over the long term.
What Lenders Assess Beyond Salary
When assessing a £150,000 mortgage, lenders look beyond headline income and consider:
- Employment stability and contract type
- Regular outgoings such as loans, credit cards, childcare, and maintenance
- How income is actually used month to month
- Spending patterns shown on bank statements
- How much disposable income remains after commitments
This explains why two applicants earning the same amount can receive very different outcomes.
Typical Uses for a £150,000 Mortgage
A £150,000 mortgage is commonly used in scenarios such as:
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- Buying with a moderate deposit
- Purchasing a mid-value property
- Shared ownership purchases
- Remortgaging an existing loan
- Buying out an ex-partner
Each scenario can affect how lenders assess risk and affordability.
Single Applicants vs Joint Applicants
Single applicants
A single applicant may qualify for a £150,000 mortgage on a stable, mid-range income if outgoings are low. However, lender minimum income thresholds can still limit options.
Joint applicants
Joint applications often make approval easier by combining incomes. Even if one income is modest, the combined affordability picture can sit comfortably within lender criteria.
How Mortgage Term Choice Impacts Affordability
The mortgage term you choose has a major effect on monthly repayments.
- Longer terms reduce monthly costs
- Shorter terms increase repayments but reduce total interest paid
Lenders also consider retirement age and long-term income stability, especially where applicants are approaching later working years.
How Your Deposit Affects a £150,000 Mortgage
A larger deposit can improve both approval chances and interest rates.
Although the mortgage amount remains £150,000, a higher deposit can:
- Reduce lender risk
- Unlock more competitive interest rates
- Improve affordability calculations
- Provide flexibility where income is near minimum thresholds
This can materially improve the overall mortgage offer.
Can You Get a £150,000 Mortgage With Bad Credit?
Yes — depending on the circumstances.
Lenders usually consider:
- How recent the credit issues were
- Whether debts are settled or ongoing
- How finances have been managed since
- Evidence shown in recent bank statements
Because £150,000 is not considered a high loan amount, some lenders may take a more flexible view where repayments are clearly affordable.
What If You’re Self-Employed?
Self-employed applicants can qualify for a £150,000 mortgage, but income assessment is more detailed.
Most lenders will review:
- Two years of accounts or tax calculations
- Averaged income over that period
- Evidence of stable or increasing earnings
Some lenders take a more flexible approach where income is consistent and outgoings are controlled.
Why Bank Statements Matter
Bank statements play a key role in mortgage decisions at this level.
Lenders will look for:
- Overdraft usage
- Gambling or high-risk transactions
- Missed bill payments
- Regular saving habits
- Whether income comfortably supports lifestyle spending
Strong account conduct can significantly improve outcomes, even where income is only just within range.
What Can Reduce Your Chances of Approval?
Even for a £150,000 mortgage, applications may be declined due to:
- High unsecured debt
- Regular overdraft reliance
- Recent missed payments
- Irregular income patterns
- Unstable employment history
This can make mid-range mortgages feel more restrictive than expected.
How to Improve Your Chances of Approval
Helpful steps include:
- Reducing unsecured debts
- Avoiding overdraft use
- Keeping spending consistent for several months
- Avoiding new credit before applying
- Saving a larger deposit if possible
These changes can meaningfully improve affordability assessments.
Is a £150,000 Mortgage Easier Than a Larger One?
Not always. While repayments are lower than on larger loans, lender policies around minimum income and stress testing still apply.
In many cases, choosing the right lender criteria is more important than the mortgage amount itself.
Key Takeaways
- Monthly repayments are typically £650–£900, depending on term
- Income needed is often £38,000–£42,000, depending on lender rules
- Full affordability checks apply at £150,000
- Deposits and spending habits strongly influence approval
- Lender choice can make a significant difference
This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.