£150,000 mortgage
If you’re considering taking out a mortgage, it’s important to understand how the monthly cost can vary. For example, a £150,000 mortgage over 25 years at an interest rate of 3% would cost £711 per month. However, if the interest rate increased to 4%, the monthly cost would increase to £791 – an extra £80 per month.
Your monthly mortgage payment may also include any buildings and contents insurance you have, as well as any other additional products or services you may have chosen, such as mortgage protection insurance.
Generally speaking, the larger your deposit, the lower your monthly mortgage repayments will be. This is because you will be borrowing a smaller amount of money and so will have less interest and debt to repay.
When you are ready to start looking for a mortgage, it is important to compare deals from different lenders to find the one that best suits your needs. It is also worth bearing in mind that the interest rate is not the only factor that will affect your monthly repayments. The term of the mortgage, the type of mortgage and any fees and charges will also play a role.
The examples below will show you what a mortgage for £150,000 could cost each month.
Interest only mortgage per month
| 150K Interest Only Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £250 | £375 | £500 | £625 |
| 15 years | £250 | £375 | £500 | £625 |
| 20 years | £250 | £375 | £500 | £625 |
| 25 years | £250 | £375 | £500 | £625 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment mortgage per month
| 150K Repayment Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £1380 | £1448 | £1518 | £1590 |
| 15 years | £965 | £1035 | £1109 | £1186 |
| 20 years | £758 | £832 | £908 | £989 |
| 25 years | £635 | £711 | £791 | £876 |
The above figures include both capital and interest combined into one monthly payment.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
What affects the monthly payment figure?
The monthly cost of a 150K mortgage will vary according to three main factors:
The interest rate: This is the percentage of the loan that you will have to pay each year in addition to the amount you borrowed. The higher the interest rate, the more your monthly repayments will be.
The term of the mortgage: This is the length of time over which you will repay the loan. The longer the term, the lower your monthly repayments will be, but you will end up paying more in interest overall.
The type of mortgage: There are two main types of mortgage – repayment and interest-only. With a repayment mortgage, you will repay both the amount you borrowed and the interest on it each month. With an interest-only mortgage, you will only need to repay the interest each month, and you will need to find a way to repay the amount you borrowed at the end of the term.
If you are looking for a £150000 mortgage with low monthly repayments, you may want to consider taking out an interest-only mortgage. However, you will need to make sure that you have a plan in place to repay the amount you borrowed at the end of the term.
The fees and charges associated with your mortgage can also affect your monthly repayments if they are added to the mortgage balance.
Can you get an interest only mortgage?
An interest only mortgage is normally offered by most lenders. However, any mortgage lender will be keen to understand how you intend to pay back the mortgage before approving this request.
What’s the best mortgage term?
The best mortgage term is the one that fits your situation.
Most people opt for a term of 25-30 years at the beginning of their house buying journey.
How do I make my monthly payments cheaper?
Making the following changes will reduce the mortgage monthly payments:
- REDUCE THE MORTGAGE AMOUNT – A little obvious but by borrowing less your monthly payments will be less.
- EXTEND THE MORTGAGE TERM – A repayment mortgage will be cheaper over 30 years compared to 25 years.
- CHEAPER INTEREST RATE – By getting a better deal on your interest rate will enable your payments to reduce.
- CHANGE TO AN INTEREST ONLY MORTGAGE – This will make your payments considerably cheaper. However, by moving away from a capital repayment mortgage, you will no longer be repaying the mortgage.
You should seek advice from a mortgage broker before making any of these changes.
FAQ
Frequently Asked Questions
How much does a £135,000 mortgage cost?
For more specific mortgage amounts we recommend using our online mortgage calculator.
Can I borrow over 30 years?
Many more homeowners are now repaying their mortgages over a 30 year period. Please ask your mortgage broker to see what options you have.
What is the APRC?
APRC stands for Annual Percentage Rate of Charge. It is a standard interest rate calculation designed to reflect the total amount of interest that will be paid over the entire period of the loan.
What does LTV mean?
LTV is loan to value. It is the ratio, expressed as a percentage, of your mortgage when compared to the property value.
Do you have an online calculator?
Yes we have a free mortgage repayment calculator to help people work out the cost of a mortgage and moving home.
How does a repayment mortgage work?
With a £150,000 repayment mortgage over 25 years the lender has to calculate how much to charge you each month so that the loan is fully repaid at the end. So each month you will pay some interest and some capital.
