Getting a mortgage as a teacher is very similar to every other mortgage applicant. You will need to follow the same processes, including proving your income, although your profession may mean that lenders are willing to look at your individual circumstances as part of the application process.
However, there are some specialised teacher mortgages and a few lenders who offer special mortgages specifically designed for professionals such as doctors, nurses and accountants. Certain lenders are more confident in allowing professionals to borrow a higher multiple of their salaries, as they are viewed as lower risk.
Their professionals are seen as stable, generating regular salary increases. For this reason, they may allow teachers to borrow up to 5.5 times their salaries, which can increase your budget significantly.
Is it easier for a teacher to get a mortgage?
The teaching profession, alongside other professions, is viewed favourably by mortgage lenders because of the inherent stability of the role.
Stability of employment, long-term job security and prospects, annual increments and the level of education required all serve to make teachers attractive prospects in the mortgage market.
However, other aspects can affect your application for a teacher mortgage. Length of employment, the type of teaching contract you have or an adverse credit report can all impact upon the process. As with any other mortgage applicant, it’s important to make sure your financial situation is optimised for your application. At Mortgage360, we’re here to help you do that.
Is it more difficult if you are also a first-time buyer?
Making the decision to step onto the first rung of the property ladder is a challenging time, but it needn’t be too difficult for you as a teacher. There’s lots of support out there, and you’re working in a favourable profession!
Teachers as first-time buyers don’t usually experience difficulties getting a mortgage. There can be some hurdles to jump through if you are a newly qualified teacher (NQT), a supply teacher or a trainee teacher, but we can help with that.
Many mainstream lenders are happy to consider first-time buyer teachers and also offer competitive rates.
Are there any mortgage schemes with specific benefits?
The government Help to Buy scheme which proved so popular is now closed, but there are other initiatives open for consideration by teachers.
Shared Ownership is another government scheme helping first-time buyers from all walks of life to purchase their own homes. Shared Ownership lets you buy 25% or more of your home and pay rent on the remaining percentage. However, there are a limited number of Shared Ownership homes on the market.
Launched in 2021, the government’s mortgage guarantee scheme offers participating lenders a guarantee to encourage them to lend to borrowers with only a 5% deposit. The scheme has recently been extended to December 2023.
For first time buyers, the government’s First Homes scheme offers newly built homes to key workers, at a discount of at least 30% of the market value compared to the market value of equivalent properties. The eligibility criteria will differ depending on where the property is located, and the number of First Homes being built is limited.
If you’re saving for a deposit, don’t forget Lifetime ISAs. If you’re aged 18-39, you can open a Lifetime ISA and save up to £4,000 a year. The government will then give you a bonus of 25% on your contributions, topping up your deposit savings.
Right to Buy could apply to you too as a teacher, if you’re a council tenant in England, helping you buy the home you’re renting at a significant discount.
At Mortgage360, we can advise on all aspects of mortgage benefit schemes and deposit saving – give us a call.
Are mortgage rates lower for teachers?
Teachers can sometimes secure more competitive mortgage rates because of the perceived stability of their profession. However, every case is different and other aspects of your application will also impact the mortgage deal secured.
Affordability may also be viewed in a different light; many lenders are willing to advance up to and beyond the five times income ceiling to teachers, and more lenders will be favourable towards your application because of your secure profession, which means you will often qualify for better interest rates, reduced deposits or fees.
Can newly qualified teachers get a mortgage?
Yes, but it can be more challenging, as contracts for newly qualified teachers (NQTs) are usually fixed term and you probably have no employment history.
However, many high street lenders do offer products for NQTs, and in some cases even before they begin their NQT year. At Mortgage360, we can advise and guide you on the process.
Is it possible for supply teachers to qualify for a mortgage?
Again, yes, but it can be more difficult than for teachers on a permanent contract. It will also depend upon your personal situation – whether you are a long or short-term supply teacher or even a new supply teacher.
A two-year history and record of income from supply teaching is preferable, but there are lenders who look at individual case-by-case applications. We can help.
Can retired teachers get a mortgage?
Yes – there are a number of options for the retired teacher, aside from later-life lending products such as equity release or lifetime mortgages. Your teacher’s pension income will obviously play an important role here. Older borrowers can access retired teacher mortgages, often without age restrictions – specialist lenders may go beyond the usual age 70 limits.
Assessment will be the same as for any other mortgage applications, based upon your pension and any other additional income as well as your deposit (which may be the equity in an existing property).
If you are already a homeowner, it’s vital to take professional advice. Talk to us at Mortgage360 – we’re always honest, practical and impartial.
What kind of deposit is required?
Typical deposits for teacher mortgages are the same as for any other applicant. However, if you have a larger deposit, you’ll have more deals and more lenders to choose from, which means you will be able to secure a better mortgage deal.
What are the requirements for a teacher to be eligible for a mortgage?
Lenders base their mortgage assessments largely on risk and affordability, so as a teacher you will be viewed in a more favourable light.
If you’ve been qualified for some time and have a good credit history, you should be able to secure attractive loan terms.
Like every other applicant, you will need;
- A positive credit report
- Proof of identity and address
- Evidence of your deposit
- Proof of income
- Proof of affordability
How can Mortgage360 help Teachers get the right mortgage
At Mortgage360, we have experience helping professionals to secure advantageous mortgage deals. We offer specialist advice and can access an extensive portfolio of mainstream and specialist lenders to help you find the right lender and the mortgage product that matches your individual circumstances.
We’ll take you through the application process and manage the administration – we understand the challenges of your working hours as a teacher and will work with you to make the process swift and easy. Talk to us!