ClickCease

See how we can help

0808 301 9509

Get a quote

Income for £150,000 mortgage

Author: Myles Robinson - Expert Finance Advisor

Posted: Jun 29, 2022

Income for £150,000 mortgage – How much do you need to earn?

As mortgage brokers, customers often tell us that they are interested in a property that would need a £150,000 mortgage. The first thing they want is to find out how much their income multiples need to be to get a £150,000 mortgage.

Contact us today for mortgage advice, we can introduce you to a mortgage lender who will lend a £150,000 mortgage. We provide mortgage advice free of charge and we also have an online mortgage calculator in the next part free to use.

How to get £150,000 from the best mortgage lenders?

Constitute financial advice today, this could save you time and money to achieve your £150,000 mortgage.

Use an online calculator journey for information about how much you can borrow with your income multiples, what the monthly repayments are and which deals you might be eligible for. As a mortgage broker company, we have access to the few mortgage providers lending £150,000 mortgages.

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote

Getting good mortgage advice always helps

Some people may have been denied a mortgage while others are uncertain because of their bad credit history. The good news? Even if you have bad credit, the brokers that we work with can find the best deal for you.

We answer this question and provide a description of the eligibility and affordability requirements you will need to meet in order to obtain a loan for this amount.

Get a quote  

 

What salary do you need in order to obtain a mortgage for £150,000?

This is one of our most frequently asked questions. The answer is that it can vary between lenders.

Lenders decide how much money they would be willing to lend you, based on multiple your annual salary. Most lenders will lend you 4x your annual salary if you meet their eligibility requirements. Some will give you 5x, while others will offer you 6x. A minority will extend to 6x depending on the circumstances.

To borrow £150,000, most lenders require that the combined salary of all those who are applying for the mortgage be £37,500. Some lenders will lend you £30,000 if your income is above £25,000.

Take a look below at our mortgage affordability calculator to see how it might work with your current income.

Every mortgage provider has different eligibility and affordability criteria. It is worth getting the right advice to determine which one offers the best multiples of your salary.

A mortgage broker can help you access 30% more mortgage markets.

What other factors will the mortgage lender consider when calculating affordability

As we have already mentioned, affordability is more than just what you make from your full-time job. When customers ask us how much they need to make to qualify for a £150,000 mortgage, we are quick to tell them that even if their income isn’t as high as the one in the previous section, it might be possible.

Continue reading to learn how it is possible.

Other sources of income can be used to supplement your earnings

Many UK mortgage lenders will allow borrowers to add the following to their income.

  • Benefits
  • Side hustle
  • Commission
  • Bonuses
  • Overtime is a regular occurrence
  • Profit-sharing
  • Dividends
  • Other legal sources of income that you might have

While not all lenders will accept these types of earnings as declared earnings, others will, and some more than others (i.e. Some providers may limit the amount of your commission and bonuses that can be used to finance a mortgage application.

To ensure that you get the best deal possible, you need to locate a specialist lender if you earn some income from any of the above sources or any other source of capital.

Our advisors have access to all the markets and can help you find the best mortgage provider to match your income and provide you with a £150k mortgage at favourable rates.

Get a quote  

 

If I am self-employed, can I get a £150,000 loan?

Although the answer to this question is “yes”, it’s best to speak to one of our specialist mortgage brokers who work daily with self-employed borrowers.

Although the way lenders calculate your income may be different from if you were earning a PAYE salary or higher, that doesn’t mean you won’t be able to get a great deal.

While most lenders will base your earnings on net profit/salary plus any dividends, some lenders may be more flexible and allow you to consider other capital.

What length of time do I have to be trading?

Most lenders will base their offer on your average earnings for the past three years. However, some will base it on two years. A few might offer a self-employed mortgage based on one year of accounts.

Also, your outgoings will be considered

This is not a matter of how much income you need to pay for a £150k loan. They might refuse to approve you if you don’t have the ability to pay the monthly repayments.

Your other expenses are a key consideration when assessing your ability to pay your mortgage. The decision of the mortgage provider to lend could be affected if you have any significant financial obligations, such as personal loans or credit card debt.

Get a quote  

 

How much deposit do I need?

The loan-to-value ratio (LTV) determines how much deposit you will need. This is basically how much a lender will offer you in relation to the property’s value.

A mortgage application that has a low deposit is considered riskier. This means fewer lenders will consider it and may charge higher interest rates to offset this risk.

Deposits of 20% are accepted by most lenders, while 10% will be accepted by some lenders. A few lenders will only accept deposits as low as 5%.

If a property is valued at £200,000, and you have a £10,000 deposit, the LTV would be 95%. This is the maximum LTV most lenders will accept for residential properties.

The amount of deposit that you can make for a £150,000 mortgage directly impacts the loan-to-value (LTV) ratio as well as the terms and interest rates.

LTV refers to how much the lender will offer you relative to the property’s total value. It is the ratio of the mortgaged property to the amount you have paid upfront and the deposit.

Higher deposits mean a lower LTV which can translate into better terms and mortgage rates. If you have a large deposit, lenders will consider you to be a lower risk. They can offer you better deals and lower monthly payments.

Low deposits translate to high LTV ratios. Lenders can also insist on tighter terms that could result in higher interest rates and fees. A higher deposit and a lower LTV ratio will get you the best £150,000 mortgage deals. Higher amounts will result in lower interest rates, monthly payments, and total loan amount.

What is Loan to Value (LTV), you ask?

LTV (Loan to Value) is a limit on how much a lender will lend you. It is the difference between the property’s value and the amount of the mortgage.

The amount of the deposit depends on many factors, including income, credit history, and size of the deposit.

This chart is based on a £150,000 mortgage. It will show you the potential value of a property if you increase your deposit.

Is it possible to have the deposit gifted to you?

A gifted deposit must be from a relative (parents or grandparents or siblings, uncles or aunts, etc.). However, in some cases, one or more lenders may accept a gift from someone other than a close friend or another explicable source.

Did You Know A Mortgage Broker has access to more deals that any other comparison site. Get started to discover more options and increase your chances of getting approved for a mortgage.

Get a quote  

Can bad credit impact my application for a £150k Mortgage?

If you have a bad credit history, it can affect your ability to find mortgage lenders.

Here is a list of possible credit issues that could affect your mortgage application

  • Overview of adverse credit
  • Credit score low
  • Mortgage arrears
  • Defaults
  • County Court Judgements (CCJs).
  • Individual Voluntary Arrangements
  • Debt Management Plans (DMPs)
  • Bankruptcy
  • Repossession

It will also affect how recent or severe the issue was. Lenders will prefer applications from people with older cases of adverse credit (rather than more recent misdemeanours), and some lenders will ask clients to reapply once a certain period of time has passed.

Our advisors are specialists in providing advice to people with poor credit. They have access the entire market and will do their best to find the right mortgage for you.

The Effect of the Term on the Cost of a £150,000 Mortgage

The term of your mortgage will have a significant impact on how much £150,000 monthly mortgage costs and the final amount you pay. The majority of UK lenders offer a repayment term of between 5 and 30 years for a £150,000 mortgage.

The amount you can afford each month will determine how long it takes to pay off your mortgage. While you will get lower monthly payments if the loan term is extended, the total cost of the loan will be greater.

With a shorter term mortgage, you will have lower monthly payments but a lower overall cost. A £150,000 mortgage with an initial term of 30 years will cost you thousands less than a mortgage for only 20 years. If you are looking for lower monthly payments that you can afford, the longer term may be worth it.

It is wise to choose a term that you can afford without causing financial hardship. The table below, which is based on a 3% rate of interest, can give an idea of how the term will affect how much a £150,000 monthly mortgage costs.

How interest affects the cost of a £150,000 mortgage

The interest rate directly impacts how much you will pay each month in mortgage repayments, the interest rate is critical for any loan or mortgage. For a £150,000 mortgage, UK mortgage lenders can offer interest rates ranging from 1% to 5 percent.

Lenders will offer rates based on your credit score or profile, as well as the amount of your deposit. Each month, the interest and a portion of capital are paid back until the loan is fully paid off.

 

How will my age impact my ability to get a £150,000 mortgage loan?

Older borrowers may find it difficult as lenders can limit your maximum age at the time you apply or at the end of the loan term.

There are lenders that will lend to people up to 95, some with no age limit and some who will lend up until they’re 90. Our advisors know these lenders.

An equity release mortgage might be an option if you already own property.

Can I get a £150,000 mortgage on a unique property?

The property must not be constructed in a standard manner (i.e. Brick with a tile roof is a less popular option as lenders see them as riskier.

These include:

  • Listed Buildings
  • High Rise
  • Ex Local Authority
  • Uninhabitable
  • Constructions that are not standard
    • Concrete
    • Tin Roofs
    • Timber Frame
    • Steel Frame
    • Thatched Roof

Specialist lenders will accept some of these properties. Talk to one of our expert advisors if you are interested in a yurt, castle or another type of property.

Can I get a £150,000 loan for a Buy to Let?

Yes. However, residential mortgages have different criteria. While most lenders require a 25% deposit to get a mortgage, some may allow 15%. For BTL mortgages, some providers have minimum income requirements. This is especially true if you are a first-time landlord. The standard requirement is £25,000 per year.

Many properties that are available for purchase are interest-only and offer many benefits.

And unlike a residential-interest-only agreement, there is no need for a repayment strategy. Most lenders will allow you to sell the property at the end of the loan term in order to pay off the capital.

Drop us a note to learn more about mortgages from expert mortgage brokers.

Can I get a £150,000 loan for my second home?

There are many reasons why someone might need a second home. You could use it for business, as a holiday home, or as a home for family members (e.g. a child or grandchild at university).

The lender will first consider whether you are able to afford the additional repayments. Second-home mortgages are considered riskier and they are not accepted by lenders.

Additional costs like maintenance, stamp duty and utilities will also be important.

Talk to our mortgage broker for mortgage advice and for help in navigating the possible pitfalls. They are experts at getting the best deal on second homes.

Can I get a £150,000 loan secured?

Yes. You can, provided you have sufficient equity in your home. Secured loans may also be called secured home loans,’ ‘home-owner loans, or second charges.

Although secured loans are more common than unsecured loans, they can be easier to get. However, if you don’t repay the loan on time, your property may be taken away.

You should seriously consider a secured loan if you want to get the best advice. Get in touch with us today.

Speak to an expert mortgage broker

Contact us today. We will match you with one of our whole-of-market broker and mortgage lender partners. They’ll be able to answer all your questions and find the right mortgage for you at the best rate.

We offer a free service with no obligations and won’t affect your credit rating.

Get a quote  

More News