Before You Continue…

Our website uses cookies. By continuing to browse the site, you are agreeing to our Privacy Policy.

OK - continue
logo
Search for mortgage help
CALL US:  023 8098 0304
Mobile menu bars Close mobile menu
mortgage calculator mortgage calculator
request a call back Request a Callback
email us info@themortgagehut.net
call for mortgage advice chat online now
Search for mortgage help

Specialist Mortgage Help

  • First Time Buyers
  • House Mover Mortgages
  • Bad Credit Mortgages
  • Remortgaging
  • Equity Release
  • Self Employed Mortgages
  • Buy to Let Mortgages
  • Expat Mortgages
  • Commercial Mortgages

Useful Links

  • Home
  • Contact us
  • Mortgages
  • Mortgage Insurances
  • About Us
  • Customer Reviews
  • Refer a Friend Scheme
  • Expert Articles
  • News
  • Sitemap
  • New Build Mortgages
  • CIS Mortgages Explained

Privacy Settings

  • Privacy Policy

How can I get a mortgage for £150,000?

  1. Home
  2. Expert Articles
  3. First Time Buyers
If you think you’re in a position to buy a property and you’re eyeing homes up worth £150,000, then this guide has been written for you. 

We’ve listed the factors that could affect your eligibility and have also explained how much income you’ll need to earn, while comparing deposit sizes for 150k properties. 

Am I eligible for a 150k mortgage?

First things first, every mortgage is different and each lender will have a different set of criteria that they use to assess whether you’re eligible for their approval.


Finding the right mortgage is usually a lot quicker with the assistance of a mortgage broker because they’ll know where to look and which lenders can provide you with the type of mortgage you’re looking for, with terms that are affordable. 


You can use a mortgage calculator for a guide on how much you can borrow but for an accurate reflection of whether you’d get approved for a mortgage worth £150,000, ask us here. 

How does my affordability affect a mortgage for £150,000?

Lenders want to loan to customers who are more likely to repay their debt in full and on time. To determine this, they’ll look at factors including:


  • Age - older borrowers can be given shorter mortgage terms

  • The hours you work i.e. part time or full time

  • Your credit history

  • The amount of debt you have

  • The cost of your outgoings 

  • The type of property you’re buying - some structures or building materials can be expensive to repair and maintain, so lenders will want to check you can afford them.

How do I provide evidence of my income for a £150k mortgage?

Depending on whether you’re employed or self employed, your lender will likely ask for evidence of your income in the form of:


  • Bank statements

  • Pay slips

  • Tax returns


When calculating your affordability for a 150k mortgage, lenders will also look at your outgoings including:


  • Household bills

  • Any debts you have including credit cards or car finance payments

  • Other outgoings such as travel costs or childcare costs


If they think that your current circumstances won’t allow you to easily repay your mortgage, your outgoings and any repairs and maintenance of the property, they’re unlikely to approve your loan.


If however, they calculate that your income is sufficient enough to cover your repayments and your other outgoings, it may be possible to get approved for a £150,000 mortgage. 

How much do I need to earn for a £150,000 UK mortgage?

There isn’t necessarily a minimum income required to get a mortgage as lenders will consider other factors other than your income, such as the term of the mortgage or your credit history, to decide if they can accept you or not. 


That being said UK lenders are prone to using income multiples when considering mortgage applications. 


Some lenders use a multiple of 4.5 x a yearly salary, others 5 and in exceptional circumstances, a handful of lenders use multiples of up to 6 x a person’s annual income.


Higher income multiples tend to be considered when applicants are deemed as good borrowers, so that will usually mean a high credit score and a credit history that demonstrates timely payments. 


So, hypothetically, if your chosen lender used an income multiple of 4.5, to qualify for a £150,000 mortgage, you’d need a minimum income of £33,333 a year.

Can I get a mortgage for £150k if I’m self-employed?

Your ability to get approved as a self employed borrower depends on a multitude of factors, including your credit history, reliability of income and gross yearly income.


If you’re able to prove you have an income and potentially a future income, in the form of contracts, that is enough to repay your mortgage, a lender could be willing to accept your application.


You’ll also need:


  • Two or more years' certified accounts

  • SA302 forms 

  • A tax year overview (from HMRC) for the past two or three years


Keep in mind that some lenders deem self employed borrowers as higher risk and they can ask for higher deposits. 


This isn’t always the case but it can be helpful to have a mortgage broker check the market to compare a range of lenders as it may be possible to get a mortgage with a lower deposit requirement. 

How much deposit do I need to buy a £150,000 house?

Most UK lenders are asking their borrowers to put down 15 - 20% of the property's market value, though this certainly isn’t always the case as some lenders can still offer advantageous deals.


Having a larger deposit can mean having to save a little longer but it can also make the cost of borrowing cheaper in the long run. Another benefit of having a larger portion of the property’s value as a deposit is that sometimes it can allow you to access a wider range of lenders, who may be more open to lending at lower loan to value rates. 


See the table below to learn more about how your deposit size can lower the amount you have to borrow.


Property value

    Deposit size as a percentage     

Deposit size in GBP  

 Mortgage amount   

LTV ratio

£150,000

5%

£7,500

£142,500

95%

£150,000

10%

£15,000

£135,000

90%

£150,000

15%

£22,500

£127,500

85%

£150,000

20%

£30,000

£120,000

80%

£150,000

25%

£37,500

£112,500

75%


Can I get a BTL mortgage for £150,000?

It may well be possible to obtain a buy-to-let mortgage for £150,000, though it can be easier with the assistance of a mortgage broker who will know the lenders that are most likely to accept you. 


Some lenders can be cautious about providing mortgages with higher LTV ratios, so may ask you for a higher deposit. Your other circumstances can also affect how much deposit you’ll need for a BTL mortgage, though you can expect to need a minimum deposit between 20 - 40% of a property's market value.


If you were to apply for a mortgage for £150,000, that could mean that you’ll need a £60,000 deposit. 

Where can I find the best mortgage deal for a 150k mortgage?

Finding a lender to approve a mortgage for £150,000 can be easier with the help of a professional who knows the market and can guide you through the process. 


Not only can this help you save money by finding the cheapest interest rate but it can also help you to avoid unnecessary mortgage rejections. 


Call 02380 980304, use our contact form to let us know about your plans to get a mortgage for 150k. 


Managing Director Nicola Schutrups
First Time Buyers Expert Article by
Nicola Schutrups (Managing Director)
The Mortgage Hut

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Related First Time Buyers Information

  • Here's what you need to know about the First Homes programme
  • Can I get a 90% LTV mortgage after Covid-19?
  • Mortgages for Nurses
  • Help to Buy Explained
  • How can I get a mortgage for £170,000?
  • Can I buy my rental house from my landlord?
  • Mortgage withdrawal after Contract Exchange
  • Can I buy a property at auction during the Coronavirus outbreak?
  • How can I get approved for a £330,000 mortgage?
  • How can I get a £250,000 mortgage?

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Contact The Mortgage Hut

Head office address of The Mortgage Hut
SOUTHAMPTON (HQ)
14 College Place
Southampton
Hampshire
SO15 2FE
Head office phone The Mortgage Hut
023 8098 0304
Head office email The Mortgage Hut
info@themortgagehut.net
Contact Us

The Mortgage Hut Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

The Mortgage Hut Limited. Registered Office: 14 College Place, Southampton SO15 2FE Registered in England Number: 07629941

Contact Us

Important Information

  • The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
  • Some products are not regulated by the Financial Conduct Authority.
  • Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • There may be a fee for mortgage advice.
  • The actual amount will depend upon your circumstances.
  • The fee is up to 1% and a typical fee is £748.

Data Protection & Privacy

You voluntarily choose to provide personal details to us via this website.

Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998.

You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

When you use our website, we access your device/computer to set cookies and collect data.

We do this so it works, is secure and delivers the best browsing experience.

We also collect data to study how people use our site and help us improve our services and tailor our marketing.

For more information see our Privacy Policy.

back icon
close icon

Specialist Mortgage Advice

Mortgage Advice

Mortgage Advice
Get Started
Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice
Get Started
Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage
Get Started
Buy to Let Mortgage

Buy to Let Mortgage

Is the mortgage for your home or a business venture?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Are you buying or remortgaging?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Have you found a property yet?

Yes Button Yes Hover Button
No Button No Hover Button

Is the property house or a flat?

House Button House Hover Button
Flat Button Flat Hover Button

What is the property’s estimated value?

£

Deposit amount or equity?

£

Have you got any adverse credit?

Yes Button Yes Hover Button
No Button No Hover Button

What types of adverse credit?

Next Button Grey Next Button Blue Next Button White

What is you combined annual income (before tax)?

£

Sourcing Mortgages…

Nicola Arbon

“There's a reason why over 500 clients rate us as Excellent.”
Nicola Arbon, Managing Director and Mortgage Guru

Green Tick

Congratulations, we've successfully found you multiple mortgage options.

Next Button Blue Next Button White

Please enter your name to send you the results

Please enter the best email to send you the results

What is the best number to reach you on?

What day & time best suits you?

Next Button Blue Next Button White

Thank you

logo

A member of The Mortgage Hut team will review your enquiry & we’ll be in touch to discuss in more detail & to advise on the options available to best suit your needs.

Head office phone The Mortgage Hut 023 8098 0304