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What You Should Know About Teacher Mortgages
Do Teachers get special mortgages?
There are no mortgage products aimed specifically at teachers, however, there are lenders who specialise in helping those in the teaching profession to obtain a mortgage. This type of lender is more empathetic to the unique challenges that come with being a Teacher.
At The Mortgage Mum, we can help you to find those lenders accepting of whatever job-specific challenges you may face with your mortgage application, such as:
Newly Qualified Teachers
If you’re a newly qualified teacher, you’ll often be on short-term temporary contracts for a number of years before you move into a permanent teaching position. Mortgage applications are always more challenging for those workers in roles that are considered to be less stable.
Fortunately, there are some niche lenders who are willing to consider newly qualified Teachers. We can introduce you to those lenders who are open to applications from those in your specific role.
For supply teachers, it can be more difficult to obtain a mortgage offer, but again, there are teacher friendly lenders who would be willing to look at your application.
It’s likely that lenders will expect you to have at least twelve months of continuous supply work, in order to consider your application. Any written guarantee of continuation of the contract will also improve your overall acceptability.
As a retired teacher, in receipt of a teacher’s pension, you will also benefit from using a teacher specific lender. Specialist mortgage lenders will take your full pension into consideration when they calculate your affordability, your age will also be a factor, much the same as any other retiree.
Do I qualify for special rates?
If you are a teacher or other educational professional, employed either part or full-time in any of the following roles:
- Fully qualified teacher/lecturer
- Newly qualified teacher (NQT)
- Teaching assistant (NVQ level 3)
- Supply teacher
- Nursery Nurse (NVQ level 3)
- Children’s therapist
- Contractors, retired workers, and those in receipt of educational grants or bursaries (in some cases)
then you may qualify for special deals from some lenders. This could include discounted mortgage interest rates, lower deposits, or reduced fees. This is not an entitlement, however, it is entirely at the discretion of each individual lender and will vary from one to the next.
Is it more difficult for Teachers who are also First Time Buyers to get a mortgage?
There are no additional barriers to teachers who happen to be a First Time Buyer than other Teachers, or indeed First Time Buyers who are not Teachers would experience. It can be difficult for those in lower-paid teaching positions of any type to get on to the property ladder, via a standard residential mortgage, due to meeting the affordability criteria, however.
Many of the homeownership schemes intended for First Time Buyers may also be beneficial to teachers. For example:
- Help to Buy equity loan – allows First Time Buyers to borrow up to 20% of the mortgage to top up your 5% deposit to 25% so that you only need a 75% loan to value mortgage. https://www.helptobuy.gov.uk/
- NewBuy Scheme – Gives you access to a 95% mortgage at a reduced interest rate with just a 5% deposit from you.
- Shared Ownership Schemes – This allows you to buy a percentage of your property, making the mortgage more affordable https://www.helptobuy.gov.uk/shared-ownership/
Can Teachers Remortgage or get Buy to Let Mortgages easily?
Those workers in the education sector have the same access to all mortgage products as other applicants. Therefore, in theory, a Buy To Let mortgage or Remortgage products should be just as easy to obtain.
Mortgage protection products
As a teacher, you may have access to employment benefits like employment and mortgage protection policies. Lenders may look more preferably on those with such policies in place as your income is considered to be at less risk.
Whilst they can aid your mortgage application, it’s important to realise that some employee protection schemes have limitations. Whilst Payment Protection is optional, it’s a good idea, to properly consider whether additional mortgage protection would be advantageous.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
How can The Mortgage Mum help Teachers who are looking for a mortgage?
At the Mortgage Mum, we specialise in helping key workers, including those in the teaching profession. Whilst some high street lenders offer mortgage deals to teachers, we can offer you a more comprehensive selection of offers across both high street and independent lenders, to ensure you find the most suitable mortgage product for your individual circumstances.
We are also happy to take much of the administrative burden out of the application process. We understand how busy your life is and will work around your availability to make the whole process easier for you.
Can we support your PTA?
Here at The Mortgage Mum we want to show support to schools that want to work with us. That is why when we complete a mortgage application, we will donate £50 to the school PTA. Please let us know if your school would be interested in this!