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Facts about a £150,000 mortgage

A very common mortgage amount in the UK currently is £150,000 and the average house price in July 2022 was £292,000. If you’re looking for more information about a £150,000 mortgage then we’re here to help.

We aim to answer your questions about everything mortgage and our team of fully qualified expert mortgage advisors are on hand to help you, every step.

In this section we look at everything you should need to know about a £150,000 mortgage and all of the facts.

What is a £150,000 mortgage payment?

The most common question with any mortgage is ‘how much is it going to cost each month?’. Mortgage rates will inevitably change over time, however, you can often get a good idea by using any mortgage repayment calculator.

Two things to remember here are that the mortgage repayment every month will depend on your mortgage interest rate (%) and your mortgage term (years). There are several types of interest rate available when it comes to mortgages, which are fixed rate and then special rates (variable, discount or tracker).

The other major factor is the mortgage repayment type, which can be capital and interest (repayment mortgage) or interest only. As a rule, you will only ever really need to think about repayment mortgages, unless you are purchasing a Buy to Let or investment property.

We’ll also look at £150,000 interest only mortgages in this section for buy-to-let borrowing and property investors.

Here are some common examples for your £150,000 mortgage:

A £150,000 mortgage 15 year

This is a very common mortgage that we come across, both term and the amount of mortgage. Here are some examples of a £150,000 mortgage 15 year repayments:

Interest rate (%)Mortgage repayment (£’s)Total cost of loan (£’s)
3.01,036186,457
4.01,110199,716
5.01,186213,514
6.01,266227,841
7.01,348242,684

As you can clearly see from the £150,000 mortgage 15 years examples above, there is not a big difference between small interest rate rises. Interest rates have started to increase so it is important to budget for higher rates potentially in the future.

A £150,000 mortgage 10 years

Many lenders will allow you to take a shorter mortgage term, sometimes as little as 5 years and 10 years. It’s not uncommon for us to see applications for £150,000 mortgage 10 years for some of our customers. Here are some examples for this:

Interest rate (%)Mortgage repayment (£’s)Total cost of loan (£’s)
3.01,448173,809
4.01,519182,241
5.01,591190,918
6.01,665199,837
7.01,742208,995

As you can clearly see from the £150,000 mortgage 10 years examples above, the repayments will be higher, but the overall cost of the loan is much lower. A shorter term mortgage like this will significantly reduce your overall cost of borrowing.

A £150,000 mortgage 25 years

Some borrowers tend to look at longer mortgage terms so that they can keep repayments low, mainly for affordability purposes. We also often see applications for £150,000 mortgage 25 years, and especially for younger borrowers.

Here are some examples for repayment of a £150,000 mortgage 25 years:

Interest rate (%)Mortgage repayment (£’s)Total cost of loan (£’s)
3.0711213,395
4.0792237,527
5.0877263,066
6.0966289,936
7.01,060318,051

This table clearly shows how a longer mortgage term can have a dramatic impact on repayments, but also on the overall costs. A £150,000 mortgage 25 years can be much more affordable, however, overall costs of the mortgage will be significantly higher.

What is a typical £150,000 mortgage payment?

We often get asked, how much would a typical repayment or interest rate be for a particular loan amount.

In this case, a typical £150,000 mortgage payment will be based on a standard term which is 25 years, and a current mortgage rate of 6.0%. Mortgage rates have been considerably lower in recent years, but this has now changed due to economic factors such as inflation.

A typical £150,000 mortgage payment would be £966 based on 6.0% interest rate and a 25 year mortgage term.

Your mortgage rate will vary depending on your income, credit history, and your Loan to Value or ‘LTV’ ratio. You should make sure that you are comfortable with making repayments on your mortgage, both now and in the future. It is key to be sure you are agreeing to monthly repayments you can afford for years to come.

What is the cost of £150,000 mortgage?

Similarly to the repayments shown in the section above, you can calculate the overall cost of a mortgage based on mortgage amount, interest rate, and mortgage term.

If we apply the same averages then the overall cost of a mortgage where the amount borrowed is £150,000 would be £289,936 over 25 years at 6.0%. There are many variables to this because interest rates will change over 25 years and you are likely to remortgage many times.

By using this very rough calculation, we can see that the cost of borrowing on £150,000 mortgage would be £139,936 in interest.

You may think that this is a big number as it almost doubles the cost of your mortgage, however, this is a standard figure and very normal in mortgage borrowing.

Can I get £150,000 interest only mortgage?

You will be able to apply for a £150,000 interest only mortgage, which is just another method of keeping mortgage repayments lower. The simple reason for this is, you are only paying off the interest of the loan and not the capital, so there will still be a debt at the end of the mortgage term.

Basically, if you were to take a £150,000 interest only mortgage over 20 years, you would still owe £150,000 in 20 year’s time.

Generally there are only a few reasons why you would want an interest only mortgage, such as:

  • Buy to Let
  • Investment property
  • Other repayment vehicle (e.g. Shares, Stocks, Pensions, etc.)
  • Commercial properties
  • Low loan-to-value (LTV’s)

The other thing to remember here is that a mortgage term will have no impact on your £150,000 interest only mortgage monthly payments. A lender’s rates can vary with some having higher interest rates than others so it is a good idea to compare deals across several mortgage providers.

Learn more about interest only mortgages.

How can a broker reduce the costs of my £150,000 mortgage?

There are several options when applying for any mortgage, the most common of these is to get advice from a broker.

Our team of fully qualified mortgage advisors will help you to find the best lenders for your circumstances, and to reduce your mortgage costs. Speaking to one of our mortgage specialists can save you significant time and even protect your credit score.

Our team can help with any mortgage type from buy to let mortgages, first time buyer mortgages, remortgages and much more.

essential MORTGAGES is a team of highly experienced mortgage brokers authorised and regulated by the financial conduct authority, readily available to offer you expert mortgage advice.

If you need help or advice to get the best £150,000 mortgage deals then you can CLICK HERE or call 0330 118 8188 TODAY.

Useful resources

Statista.com – Mortgage affordability in the UK from 2002 to 2022 with a forecast until 2026

Statista.com – Average house price in the UK from January 2007 to July 2022

Office for National Statistics – UK House Price Index: August 2022

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