Mortgages For Teachers
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Mortgages for teachers can be hard to come by. Teachers provide a vital service to society but can be misunderstood when applying for a mortgage.
Lenders can look favourably upon teaching because of its steadfast nature. Teachers might even be able to borrow more because of their profession.
That said, teaching encompasses a wide variety of roles and contract types, not to mention a very broad salary scale. So while some teachers may find it easy to get a mortgage, others may struggle to get the deal they want.
Are there special mortgages for teachers?
Teachers can apply for standard mortgages that are available to all, but sometimes lenders can offer products aimed exclusively at teachers.
To meet eligibility criteria for one of these deals, you typically need to be a:
- fully qualified teacher or lecturer
- teaching assistant or nursery nurse with NVQ Level 3
- supply teacher with a track record
- children’s therapist
It’s usually necessary for you to have a full-time, part-time, supply teacher or agency-based contract.
However, there is a building society that was set up with the sole purpose of helping teachers get mortgages. They commonly offer products at lower rates to teachers. It is still important to research the market, though, as other lenders may also be able to consider you and could have lower rates available.
I’m moving to a new school – will that affect my chances of getting a mortgage?
Not necessarily. Some lenders accept signed employment contracts if the job is due to start in the next three months.
If you’re getting a pay increase as part of your move, we should be able to use that, too!
I’m moving up a pay band soon – should I wait before applying for a mortgage?
If you have written confirmation of your new salary and when it will start being paid to you, we might be able to use it before you start getting it.
This typically only works if you’re due to get the payrise in the next three months.
I’m on maternity leave – do I have to be back teaching before I can get a mortgage?
No! If you are going back to work on the same terms as before, we can use your pre-maternity leave pay for affordability.
If you are reducing your hours, we’ll need to know what your salary will be when you go back to work.
We’ll also have to factor in any childcare costs.
Why The Mortgage Store Chorley?
Exclusive rates you won’t get directly from lenders
A dedicated point of contact from initial enquiry right through to completion and beyond
Appointments seven days a week, to best suit your schedule
Ongoing rate monitoring until completion as standard
Do you have a question?
I’m a newly qualified teacher – can I get a mortgage?
Your first teaching position is rarely a permanent one. Instead, newly qualified teachers are often offered a twelve-month fixed-term contract, which can be renewed multiple times until a permanent position becomes available.
Some lenders view the lack of a permanent contract as a concern. They need to ensure you can pay the mortgage back not just now, but in the future as well. Because of this, newly qualified teachers can struggle to find lenders that may offer them mortgages.
However, some lenders offer special products to newly qualified professionals. These products could offer a lower rate or give you the opportunity to borrow more than people in other professions. Lenders recognise that your income is likely to increase quickly, and they see the career choice as a stable one. You may need a permanent contract to apply for one of these products.
With specialist advice, it’s more than possible to find a mortgage as a newly qualified teacher.
Can I get a mortgage as a part-time teacher?
Yes, part-time work is accepted by lenders. It’s more likely to be considered if it is consistent, for example you work three days a week during term-time rather than on an ad-hoc basis when you feel like it!
Can I get a mortgage as a supply teacher?
Supply teachers rarely have consistent and reliable work because of the nature of supply teaching. This, of course, can cause problems when the time comes to apply for mortgages.
Getting a mortgage as a supply teacher is usually best served by having a history of supply teaching. That way, lenders can see some consistency. They may wish to look at your earnings from supply teaching for the past two years. If you haven’t been working as a supply teacher for that long, we might still be able to help.
Mortgages for agency supply teachers
A lot of supply teachers get work through specialist agencies. You may work in one school on a long-term basis or cover the odd day or week here and there across several schools.
If the agency pays your income tax and National Insurance contributions for you, lenders might accept your remittance statements as proof of income.
If you are responsible for your own tax and National Insurance, you are likely to be self-employed.
Mortgages for self-employed supply teachers
Some supply teachers operate on a self-employed basis, either as a sole trader or through a limited company.
In both cases, you submit a tax return to HMRC each year. Lenders will use the income from your tax calculation to work out what you can borrow. In most cases, this will be averaged over the two most recent years. However, if your income has dropped, the latest year could be used on its own.
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How much can I borrow?
The amount you can borrow depends on your personal circumstances.
In addition to looking at your income, as mentioned above, lenders will also look at your expenditure. This includes credit cards and loans as well as things like childcare and maintenance.
Every lender uses a different calculator, so speak to an experienced mortgage advisor, who will be best-placed to help you.
What deposit do I need?
The smallest deposit most lenders will accept is 5%. You may need a bigger deposit, for example if you have bad credit.
Putting down a bigger deposit than the minimum is usually an advantage, and can result in lower interest rates being available to you.
How can The Mortgage Store Chorley help teachers?
At The Mortgage Store, we work with a number of mortgage providers that specialise in helping teachers find a mortgage if they have a less straightforward application.
Whether you’ve just completed your PGCE or are in your first year of supply teaching, get in touch to see how we can help.
Although we’re based in Lancashire, we can help wherever you are in the UK, with video and phone appointments available seven days a week.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
