Mortgages for Teachers
Some mortgage providers recognise the stability, importance, and potential of the teaching profession. As a result, highly trained teachers often qualify for specialised products to help them purchase a home.
In this guide, we’ll explore mortgage options for teachers and offer tips on securing the best possible deal. We will go over:
Do teachers get special mortgages?
Strictly speaking, there is no such thing as a ‘teacher mortgage’. The mortgages available to teachers are also offered to applicants from other professions. However, some lenders do in fact specialise in serving education professionals. These providers have in-depth knowledge of the various roles, contracts, and salaries within the teaching profession.
In essence, the primary difference is that lenders often consider a teacher’s future income potential when assessing affordability, rather than focusing entirely on current income. This can be particularly beneficial if you’re early into your career or have the potential for future salary increases.
Do teachers get better mortgage rates?
Yes, teachers often have access to more lenders willing to consider their applications due to the highly skilled and stable nature of their profession. This can lead to qualifying for the best available interest rates.
Additionally, teachers might benefit from lower deposit requirements and more lenient eligibility criteria, such as acceptance of variable income and temporary contracts.
How do you qualify for a mortgage as a teacher?
You’ll likely secure the best mortgage deals if you’ve been fully qualified for many years and have a good credit score. Albeit, attractive loan terms are not just limited to senior educators.
Lenders typically evaluate applicants by considering several factors, such as whether you are a fully qualified teacher or lecturer, a teaching assistant with an NVQ level 3, a newly-qualified teacher, a supply teacher with a solid track record, a nursery nurse with an NVQ level 3, or a children’s therapist.
Can I get a mortgage as a supply teacher?
As a supply teacher, proving job stability and consistent income can be challenging, as your salary may fluctuate each year. This can make it difficult for lenders to assess your repayment ability. Though, obtaining a mortgage is not impossible.
Your ability to get a mortgage as a supply teacher largely depends on your employment structure. You might be on a school’s payroll, an agency worker paid through your own limited company, or self-employed as a sole trader.
Those on payroll may find it easier to provide proof of earnings. If you are self-employed, your tax records can serve as proof of income, with lenders commonly requiring records for at least the past two years.
Can I get a mortgage as a newly-qualified teacher?
As a newly qualified teacher, especially a first-time buyer, your limited teaching experience isn't necessarily a major issue. However, your first teaching post is often a 12-month contract as opposed to a permanent position.
Many teaching careers begin with a 12-month contract that may be renewed for several years before a permanent role is offered. This can be a concern for some lenders, as job stability is integral for mortgage repayment, and the absence of a permanent role might be viewed by some lenders as a lack of security.
Can I get a mortgage as a retired teacher?
As a retired teacher, you may still qualify for a mortgage. Although you will need to prove affordability, the Teachers’ Pension Scheme provides a defined benefit each year, which is considered a stable source of income. Having said this, you might need to seek out a specialist lender, as many mainstream banks have lending age limits.
Professional mortgages for teachers
Whether you’re a newly qualified teacher or in a more established position, professional mortgages can offer you advantageous terms. These mortgages are designed for trusted professions like teachers, doctors, dentists, and accountants, and solicitors, which are generally viewed as reliable long-term risks.
The crux is that professional mortgages are only available with certain lenders. These lenders are usually more understanding of the unique challenges of your profession. As a result, they might offer competitive interest rates, more generous terms, and reduced-deposit options specifically for teachers.
Are there any mortgage schemes for teachers?
While there isn't a specific mortgage scheme tailored exclusively for teachers, certain schemes cater to key workers and first-time buyers, such as the First Homes scheme. This initiative offers a minimum 30% discount on new build homes for eligible participants, including teachers.
Additionally, Shared Ownership is an option if your initial salary isn't sufficient for a full mortgage. This scheme allows you to part-rent and part-buy your home, gradually working towards full ownership.
If you currently reside in a council-owned property, you might qualify for Right to Buy, which offers the opportunity to purchase your home at a discounted price.
Furthermore, a guarantor mortgage could provide support, particularly if a loved one acts as a guarantor. This arrangement can mitigate perceived risk for the lender, potentially leading to more favourable terms.
How to get a mortgage as a teacher
Navigating the complex mortgage landscape can be difficult, but as a teacher, there are specific deals, offers, and benefits available to you within the market. It's vital to uncover which ones are accessible to professionals in the education sector.
Fortunately, there are expert advisors who specialise in mortgages tailored specifically to teachers. They possess comprehensive knowledge of lenders offering preferential rates and deals for individuals in this field.
A mortgage broker can guide you through the entire application process, from organising your paperwork and credit reports to identifying the best lenders for teacher mortgages and securing the lowest interest rates for your application.
At The Mortgage Genie, we're dedicated to assisting teachers in securing homeownership. Contact us at 01915809890, and we'll connect you with a professional who understands your unique circumstances. And why not see how much you could borrow up to today by using our mortgage calculator?
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.
