Teacher Mortgages

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Teacher Mortgages

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By submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements.

Teacher Mortgages – exploring the options

Teachers are usually in a good position to get a mortgage, thanks to a decent income and exceptional job security. If you’re a Newly Qualified Teacher or a Supply Teacher it can be a little more challenging. Whatever your situation, a Mortgage Broker like IMS could help you compare your mortgage options and save you money.

How can I find Teacher Mortgages?

There are no mortgages specifically for teachers, but many lenders will encourage applications from education professionals. In the past the government created a special mortgage scheme for key workers including teachers and NHS staff, but this is no longer around. If you’re interested in buying a home, the first stage is exploring how much you could borrow, the types of mortgage you’re interested in and your estimated monthly repayments. Using a mortgage calculator can help you with this – or talk to IMS and we will get you started.

What types of Teacher Mortgages are there?

The main types of mortgage include:

First Time Buyer Mortgages

While there’s no specific mortgage for First Time Buyers, there are a few common preferences among new property owners. One is that they often prefer fixed rate mortgage products, because this protects against interest rates rising and increasing your monthly payments. A second factor is the size of your deposit. Generally, if you can put down a larger deposit, your repayments will be lower. In today’s property market, however, it’s notoriously challenging to raise a significant deposit.

Remortgaging

Remortgaging is where you move from one mortgage product to another. A common time to remortgage is near the end of a fixed rate deal, as otherwise your payments can increase substantially. Remortgaging can often save you money at any time, though, especially if interest rates have fallen or your property has gone up in value.

Buy to Let

A Buy to Let mortgage is essential If you’re planning to let a property out, whether you already own it or are in the process of buying. You will need around a 25% deposit, and rates are often more expensive.

What are the main considerations in getting Teacher Mortgages?

Your income is the basis of how lenders calculate how much you can borrow, so you need to prove your salary as part of the mortgage application. They will also look at your credit score to check you meet their criteria. Credit issues can mean higher interest rates.

Newly Qualified Teachers

NQTs often worry about whether they can buy a home, especially as during training, income is low. Fortunately, some lenders will offer NQTs a mortgage even before they start their first full-time teaching role.

Supply Teachers

Temporary contracts often mean that Supply Teachers have a variable income, which can make mortgages more complex. It’s not that it’s more difficult to find a mortgage deal, it’s more about having the right documents to prove your income – self-assessment forms are a common requirement.

Mortgage Protection Products

Once you own your own home, it’s important to prepare for the unexpected. Most homeowners have some form of mortgage protection products, which are there to pay your mortgage costs should you die, or be unable to work due to illness or injury. IMS can help you decide whether life insurance, critical illness cover and income protection will be valuable to you once you’ve secured a mortgage.

How can a Mortgage Broker help teachers?

Mortgage Brokers like IMS are here to take the stress out of finding a mortgage. Our expert mortgage advisors will explore your specific situation and property goals to find the most affordable ways to achieve your property plans. We’ll compare products across high street names to specialist mortgage lenders, looking at fees, rates and criteria so that you can make an informed decision. We’ll even complete the mortgage application on your behalf. IMS (Watford) Ltd is an appointed representative of mortgage company PRIMIS Mortgage Network, a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Contact us today for expert help to achieve your property goals.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Teacher Mortgages – Finding a suitable deal

For a busy teacher it can be hard to make time to research your mortgage options. We can help you with that – we’re highly experienced in helping teachers buy a home.

You might be a First Time Buyer, planning to move or seeking a remortgage – whatever your situation, we can take the stress out of finding a good deal.

Do teachers get special mortgages?

A few years ago there were special key worker mortgages for NHS employees, teachers and other people in important public sector roles. These were, however, discontinued in 2019.

Today there are no unique mortgages just for people in the education sector, but many lenders see teachers as good customers. Some will make special allowances in calculating the affordability of your loan, while others might consider your future earning potential as a senior teacher.

How much can a teacher borrow?

Lenders will offer most customers around four times their salary to buy a home, although you may find some will offer more.

The most important thing in exploring mortgage products is to make sure they are affordable. You will need to meet all the monthly repayments on your mortgage – if not, you risk losing your home.

As with all financial products, you will need a good credit score to get the widest choice of lenders and good rates. Even with bad credit, however, it is still possible to get an acceptable mortgage deal.

Mortgages for Supply Teachers and NQTs

Some supply teachers can find it a little difficult to get on the property ladder, as their income is less predictable than for salaried, full time education professionals. While you may have some periods where you’re not working, most supply teachers have plenty of opportunities. Some lenders can be put off by a variable income, but many mortgage providers are happy to agree to supply teacher mortgages.

Newly qualified teachers are often seeking mortgages – perhaps because they are moving to a new area for work, however because your income will have been low during training, this can limit mortgage values. NQTs are also often on temporary contracts or probation, which can deter some lenders.

Fortunately many banks and building societies will look past these challenges and recognise your true potential. Teachers are highly employable and your skills will be in great demand, now and in the future. A lot of lenders will make positive assumptions based on this and offer you a competitive mortgage deal.

Teacher mortgages – First Time Buyers, Buy to Let and Remortgaging

As long as you are in a teaching role at the moment and have a good credit record, you should be able to find a mortgage, whether it’s as a First Time Buyer, to remortgage or for Buy to Let.

Buy to Let mortgages are a little more restricted, in that they often have higher interest rates and require a greater deposit. You may already need to own your own home to qualify too.

Help to Buy for teachers

There are a number of Help to Buy schemes in the UK designed to make it easier to buy a home. With an Equity Loan for example, you could buy a new build home with just a 5% deposit. Meanwhile, the Shared Ownership Scheme enables you to buy a 25% to 75% share in a home, paying rent on the rest and increasing your share over time.

Mortgage Protection Products

Buying property is a major financial commitment, so it makes sense to take out protection products to ensure your home, family and possessions are well looked after.

Mortgage companies will ask for proof of life insurance, which means that the mortgage is repaid in the event of your death. Buildings insurance is also a requirement, to rebuild the property in the case of a major accident or fire.

You might find other insurance products valuable too, such as contents insurance, income protection and critical illness cover.

How can a Mortgage Broker help if you are a Teacher?

We have helped many teachers find competitive mortgage deals. Our registered office in Watford is fully authorised and regulated by the Financial Conduct Authority to provide mortgage advice. We will seek out the mortgage lenders most likely to accept you and your personal financial situation and help you identify the most competitive offers. You can also talk to us about potential protection products.

Teachers love that we can manage the whole mortgage process on their behalf – from research through to mortgage application. As an Appointed Representative, registered in England, we are a reliable and helpful source of advice on everything mortgage-related.