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Mortgages of £150k are readily available, but it’s important to be prepared before you apply for one. In this guide, you'll learn how to calculate the repayments on a mortgage of this amount, and what to do after you’ve worked them out.
How much is a £150,000 mortgage per month?
The monthly repayments on a £150,000 mortgage are roughly £792 on average. This is based on a 4% interest rate, 25 year term and a mortgage taken out on a capital repayment basis, all of which is representative of the UK market at the time of writing (December 2024).
Paying this amount on your mortgage would mean that you will have repaid a total of £237,527 by the end of the term, provided you make no changes to the agreement.
The exact amount you will repay on a £150,000 mortgage will depend on a number of factors, including the rate and product type, which we will fully explore in this article.
Calculate your mortgage repayments
You can use our mortgage calculator below to work out what your mortgage repayments could look like. Simply enter an interest rate and term length then hit 'calculate', and the tool will provide you with some quick results.
Now that you have an idea of what your £150k mortgage could cost, you can start comparing rates and deals across the market for free on Teito - get started here.
Factors that will determine your repayments
The exact amount your £150,000 mortgage will cost each month and overall will depend on the interest rate you qualify for, the term length and the mortgage type. In this section, we will explore how these variables can shape repayments, with relevant examples.
Interest rate
The table below shows how mortgage repayments can vary based on the interest rate you qualify for. These calculations are based on a repayment mortgage with a 25-year term.
|
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 |
The interest rate you are offered will depend on how much deposit you have, the overall strength of your application and the type of mortgage you choose.
You can compare interest rates and deals from lenders across the UK for free on Teito and choose the one you want in real time - get started here.
Term length
While 25-year terms are standard for UK mortgages, most lenders will give you the option to take out a longer or shorter deal if you wish. Spreading the cost of a £150,000 mortgage over a longer term means paying less each month, but more overall in interest.
The table below highlights how mortgage payments can vary based on term length. These example results are based on a capital repayment mortgage with a 4% interest rate.
|
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 |
Repayment type
Most mortgages in the UK are taken out on capital repayment basis but most lenders will give you the option of interest-only as an alternative. The table below shows how your monthly and overall payments could look if you were to take out a £150,000 interest-only mortgage, based on a range of different rates and a standard term of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£150k |
3.5% |
£438 |
£281,250 |
|
£150k |
4% |
£500 |
£300,000 |
|
£150k |
4.5% |
£563 |
£318,750 |
|
£150k |
5% |
£625 |
£337,500 |
|
£150k |
5.5% |
£688 |
£356,250 |
|
£150k |
6% |
£750 |
£375,000 |
Your mortgage product type will also have a bearing on the exact amount you pay as there are different rates for fixed rate and variable rate mortgages, depending on how long you lock in for, the LTV ratio and whether you pay a product fee.
Mortgage amount
For many borrowers, £150k is a ballpark borrowing amount, so the table below shows how the repayments will change if you were to take out a mortgage for slightly more or less. These calculations are for a capital repayment mortgage with a 4% rate and a 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 |
Calculations all done? Here are you options now...
Other costs to include in your calculations
In addition to the repayments on your £150k mortgage, there will also be extra fees to factor into the overall cost. They include:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Legal fees: Can range from a few hundred to several thousand pounds.
- Stamp duty: See our stamp duty guide to find out how much your bill will be and whether you qualify for exemption.
- Admin costs: This includes the booking fee, telegraphic transfer fee and the account fee. All in all, admin costs for a mortgage application can cost around £1,000.
Tips to help you reduce your repayments
There are several ways you could lower the repayments on a £150,000 mortgage. Take a read through the tips below for some helpful suggestions on this:
- Put down extra deposit: This would reduce the loan-to-value (LTV) ratio and help you qualify for a wider range of mortgage deals, including ones with lower rates. The best interest rates on the market kick in at around 60% LTV (40% deposit).
- Review your credit reports: You can download your credit reports by starting a free trial with Checkmyfile. Reporting any inaccuracies or outdated information can improve your creditworthiness and open you up to better mortgage deals.
- Consider a longer term: Maxing out the mortgage term means stretching out your payments. It does mean paying more overall due to the extra interest charges, but is worth considering for anyone who needs lower outgoings in the immediate term.
- Speak to a mortgage broker: Mortgage brokers are known to secure lower rates and the most suitable deals for their customers. They often have access to exclusive deals, which would mean you save money on mortgage payments in the long run.
Compare rates and deals for £150k mortgages
Now that you have a better idea of how much your £150,000 mortgage will cost, the next step is to choose the mortgage deal you want, and you can do this for free on Teito.
Our free service allows you to compare rates from lenders across the market and select the one you want in real time. We also have independent mortgage brokers on hand to provide advice and steer you through the application process - get started here.
FAQs
All of the mortgage applicants will need combined annual income of between £33,333 and £37,500 to get approved for a mortgage of £150,000. This is because most mortgage lenders cap their borrowing at 4-4.5 times annual salary.
You may have options if you don’t earn this much, as a smaller number of lenders offer mortgages based on 5-6 times income and allow you to declare other sources of capital.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.