£150,000 Mortgage: Monthly Repayments, Income Needed & How to Qualify

A £150000 mortgage is a common borrowing level across much of the UK, whether you’re a first-time buyer, moving home or remortgaging. Understanding the monthly repayments, income requirements and lender expectations can help you prepare a stronger application.

This guide explains how much income lenders typically require for a mortgage of this size, what repayments look like at different interest rates, and the key factors influencing approval. This article provides general information only and does not offer regulated mortgage advice.

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Monthly Repayments on a £150,000 Mortgage

Repayments vary depending on your mortgage term and the interest rate. Below are example repayments on a capital repayment mortgage.

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Repayments at 4% Interest

Term	Monthly Repayment
25 years	~£791
30 years	~£716
35 years	~£670

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Repayments at 5% Interest

Term	Monthly Repayment
25 years	~£877
30 years	~£805
35 years	~£759

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Repayments at 6% Interest

Term	Monthly Repayment
25 years	~£965
30 years	~£899
35 years	~£849

These examples illustrate how interest rates and terms affect borrowing costs. Actual rates depend on lender criteria, deposit size and your credit profile.

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What Income Do You Need for a £150,000 Mortgage?

Most lenders use income multiples between 4× and 4.5× income, though this may vary.

Income Needed at 4× Income

£150,000 ÷ 4 = £37,500 gross annual income

Income Needed at 4.5× Income

£150,000 ÷ 4.5 = £33,333 gross annual income

Joint Applications

Combined income must meet the above thresholds.

Some lenders may offer 5× or 5.5× income for applicants with:

• Strong credit
• Low debts
• Stable employment
• High disposable income

However, these higher multiples come with stricter affordability checks.

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Deposit Requirements for a £150k Mortgage

Deposit size influences the interest rates available and the likelihood of approval.

5% Deposit (£7,500) – 95% LTV

• Suitable for strong credit profiles
• Strict affordability checks
• Fewer lenders available

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10% Deposit (£15,000) – 90% LTV

• Improved lender choice
• Better rates
• More flexibility on income and credit history

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15% Deposit (£22,500) – 85% LTV

• Helpful for applicants with mild historic credit issues
• Wider selection of lenders
• Stronger affordability results

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20–25% Deposit (£30,000–£37,500) – 75–80% LTV

• Often required for applicants with recent adverse credit
• Strong rates available
• Useful for complex income or self-employed profiles

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What Lenders Consider When Assessing Affordability

When reviewing a £150000 mortgage, lenders look at more than income multiples.

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1. Credit History

Lenders evaluate:

• Missed or late payments
• Defaults or CCJs
• Loan and credit card management
• Credit utilisation
• Length of credit history

Recent clean conduct is one of the strongest indicators of mortgage readiness.

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2. Employment Type and Stability

Employed applicants:

• Typically need 3+ months in current role
• Contracted hours and guaranteed income are key
• Bonuses and commission may only be partially included

Self-employed applicants:

• Usually assessed on 1–3 years of accounts
• Lenders look for consistent or rising income
• Business sustainability matters

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3. Monthly Outgoings and Debt

Even high earners may struggle to pass affordability if outgoings are excessive.

Lenders check:

• Car finance
• Loans and credit cards
• Childcare costs
• Household bills
• Subscriptions and lifestyle spending

Reducing debts may significantly improve borrowing capacity.

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4. Bank Statement Conduct

One of the most influential parts of underwriting.

Lenders look for:

• No unarranged overdrafts
• No returned direct debits
• Consistent income
• Stable spending patterns
• No heavy gambling activity

Strong conduct can offset a less-than-perfect credit score.

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5. Dependants and Lifestyle Factors

More dependants can reduce affordability because lenders cost in average living expenses.

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Can You Get a £150,000 Mortgage With Bad Credit?

Yes — depending on:

• When the adverse credit occurred
• Whether issues were settled
• Deposit size
• Income stability

Mild adverse (older than 2–3 years):

10–15% deposit usually acceptable.

Recent missed payments or defaults:

Specialist lenders available; 15–25% deposit may be required.

Multiple issues:

Manual underwriting and larger deposits (20–30%) are common.

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How to Improve Your Chances of Qualifying

(General Information Only)

1. Reduce Credit Utilisation

Lower card balances improve both credit scoring and affordability.

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2. Avoid New Credit Applications

Hard searches can disrupt applications and lower internal scoring.

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3. Improve Bank Conduct for 3–6 Months

Focus on:

• No overdraft reliance
• No returned payments
• Stable budgeting

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4. Gather Documentation Early

You may need:

• Payslips
• P60
• Employment contract
• Bank statements
• Self-employed accounts or SA302s

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5. Increase Your Deposit

Every extra 5% deposit widens lender options and may reduce monthly repayments.

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6. Correct Errors on Credit Files

Disputing incorrect data on Experian, Equifax and TransUnion can remove unnecessary barriers.

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Examples of Buyer Scenarios

Scenario 1: Single applicant earning £38,000 with clean credit

Likely qualifies for £150k at 4× income.

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Scenario 2: Joint applicants earning £20,000 each

Combined income £40,000 — meets typical income requirements easily.

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Scenario 3: Applicant with older settled defaults

Likely to qualify with 10–15% deposit depending on lender.

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Scenario 4: Self-employed contractor with fluctuating income

Possible with strong accounts or day-rate evidence.

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Summary

A £150000 mortgage is within reach for many buyers, with income requirements typically between £33,333 and £37,500, depending on lender income multiples. Monthly repayments vary by term and rate, and your success depends on:

• Deposit size
• Credit history
• Bank statement conduct
• Affordability and existing debts
• Income stability

With careful preparation, many applicants secure this level of borrowing even with non-standard circumstances or historic credit issues.

This article provides general information only. For personalised guidance, regulated mortgage advice is required.