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Income for £150,000 mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 8, 2023

Emma Lunn

Fact Checked By:
Emma Lunn - Finance Editor

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

If you want to buy a property that would require a £150,000 mortgage, you need to find out if your income is enough to meet mortgage lenders’ income multiples requirements.

A broker can help you do this – contact us today.

We provide mortgage advice free of charge and we also have an online mortgage calculator which is free to use.

How can I get a £150,000 mortgage?

Your first step should be to use an online mortgage calculator for information about how much you can borrow on your income.

The calculator will show you the monthly repayments for a £150,000 mortgage.

A broker can help find you a £150,000 mortgage.

We are expert mortgage brokers

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

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Getting good mortgage advice always helps

Some people might have been declined a mortgage due to their bad credit history. But even if you have bad credit, the brokers we work with can find the best deal for you.

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What salary do you need to get 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 multiples of 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 few will extend to 6x depending on the circumstances.

At 4x time income, to borrow £150,000, most lenders require an income of £37,500. This could be the combined income of two borrowers buying a property together.

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 of the mortgage market.

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. There are other sources of income you can use to boost your total income.

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

  • Benefits
  • Second job
  • Commission
  • Bonuses
  • Overtime
  • Profit-sharing
  • Dividends

While not all lenders will accept these types of earnings as declared earnings, others will, and some more than others.  Some providers may limit the amount of your commission and bonuses that can be taken into account on a mortgage application.

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

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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 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. A lender might decline your application if you don’t have the ability to meet the monthly repayments.

Your other expenses are a key consideration when assessing your ability to pay your mortgage. The lender will look at outgoings such as childcare expenses and debt repayments.

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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.

The lower your LTV, the better the mortgage rates you’ll be able to find.

A mortgage application that has a high LTV (and low deposit) is considered riskier, and will have a higher interest rate.

You can find a mortgage with just a 5% deposit but the interest rate will be high.

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

For example, if you have a £50,000 deposit and need a £150,000 mortgage to buy a £200,000 property, your LTV will be 75%.

But if you have a £100,000 deposit and need a £150,000 mortgage to buy a £250,000 property, your LTV will be 60% – this will give you access to the best mortgage rates.

Is it possible to have the deposit gifted to you?

A gifted deposit must be from a relative (normally parents or grandparents). However, in some cases, lenders may accept a gift from someone else. You normally need a letter from the person stating that the money is a gift and doesn’t need to be repaid.

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

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

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

  • Adverse credit
  • Low credit score
  • Mortgage arrears
  • Defaults
  • County Court Judgements (CCJs).
  • Individual Voluntary Arrangements
  • Debt Management Plans (DMPs)
  • Bankruptcy
  • Repossession

How recent or severe the issue was will affect your application. Lenders prefer applications from people with older cases of adverse credit, and some lenders will ask clients to re-apply once a certain period of time has passed.

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

What term can I get for a £150,000 mortgage?

The term is the number of years before your mortgage is paid off. A typical mortgage term is 25 years, but you can get terms from 5 to 30 years.

The amount you can afford each month will determine the term you should opt for.  A longer term will mean lower monthly payments but a higher total interest bill.

With a shorter term mortgage, you will have higher monthly payments but a lower overall cost. A £150,000 mortgage with an initial term of 30 years will cost you thousands more than a mortgage for only 20 years.

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 does interest affect the cost of a £150,000 mortgage?

The interest rate directly impacts how much you will pay each month in mortgage repayments. For a £150,000 mortgage, UK mortgage lenders can offer interest rates ranging from 1% to 5%, but rates are increasing at the moment.

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 will each have a maximum age limit you can be at the end of the loan term.

There are lenders that will lend to people up to 95, and some with no age limit. But an age limit of 65 or 70 is more typical.  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 structure of your property will affect how easy it is to find a mortgage.

Mortgage lenders view a property made of brick with a tile roof as standard.

Properties more difficult to mortgage include:

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, BTL mortgages have different criteria. You normally need a bigger deposit for a BTL mortgage, generally at least 25%.

For BTL mortgages, some providers have minimum income requirements, especially if you are a first-time landlord. The standard requirement is £25,000 per year.

Most BTL mortgages are taken out on an interest-only basis.

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.

The lender will first consider whether you are able to afford the additional repayments. Second-home mortgages are considered riskier and may not be 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 secured loan?

Yes, you may be able to get a £150,000 secured loan if you have sufficient equity in your home. Secured loans may also be called homeowner loans or second charge mortgages.

The big risk with secured loans is that if you don’t repay the loan on time, your property could be repossessed.

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.

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